Foreign investment plays an important role  in supporting market liquidity, capital formation and building global relevance for stock exchanges. In increasingly competitive capital markets, attracting international investors not only broadens the funding base for listed companies, but also enhances price discovery and market efficiency. Beyond capital flows,  it signals confidence in a country’s economic trajectory, governance standards and regulatory environment. Against this backdrop, the JSE annually hosts investment roadshows   with international investors, such as the SA Macroeconomic Summit in London in March, to promote SA’s investment opportunities.

Hosting the summit in London was strategic, says Vuyo Lee, the JSE’s Director of Marketing and Corporate Affairs. ‘The United Kingdom is a critical market for South Africa, with £12.1 billion in bilateral trade between  our countries and £26 billion in UK foreign investment into South Africa, demonstrating its strength and opportunity.’

She says the SA Macroeconomic Summit complements the SA Tomorrow conference, which the JSE hosts in New York to engage  US investors and showcase the country’s investment landscape, policy direction and long-term economic potential. ‘SA Tomorrow has been running for 10 years, whereas the UK summit  is in its second edition. The two tie in closely together as platforms that drive the consistent message that South Africa is a leading emerging-market investment destination for foreign investors. Our objective as the JSE is to promote our economy, state-owned entities and listed corporates across multiple regions, including the US, UK, China as well as the Middle East and South-East Asian countries.’

Lee says the JSE sees its role evolving in facilitating foreign direct investment. ‘Beyond being an exchange, the JSE is a convenor of markets, bringing together the private and public sectors to provide a balanced view of South Africa’s economic prospects, progress on policy reforms and the strength of its institutions. The JSE is well positioned to further support investment mobilisation for the government’s infrastructure and energy programmes. We will do this while continuing to advance work delivered through Operation Phumelela, an initiative designed to enhance the competitiveness of South Africa’s financial sector as a key global financial centre, reinforce its position as a financial gateway for Africa and reduce friction points for investors.’

Lee says the UK summit was well received by investors on the back of the ‘real progress seen with respect to our improved sovereign outlook, fiscal consolidation, monetary policy outcomes, removal from the FATF [Financial Action Task Force] grey list and progress on our government reforms in areas such as electricity and energy. These developments have positively shifted investor sentiment  as we have signalled greater stability and economic resilience through the efforts of both the public and private sectors. What  is important for investors is that we keep up this momentum in the long-term so that it translates into stronger GDP growth and policy certainty. Our government and industry representatives delivered a consistent narrative of economic and policy stability underpinned by improved fiscal metrics’.

She says public-private partnerships emerged as a central theme in attracting  long-term capital. ‘The business community has worked together with various government departments to deliver on imperatives such as Operation Vulindlela, Operation Phumelela and the removal of South Africa from the FATF grey list.

‘Our ability to work together to address pressing concerns in the country is viewed positively by investors, as well as the willingness to explore further co-operation in areas such as alternative energy generation, addressing climate change and private investment into transport and transmission infrastructure.’

Lee says both the SA Macroeconomic Summit and SA Tomorrow conference intend  to increase the level of foreign participation  in local capital markets by providing a full picture of the SA landscape directly from  the leaders shaping monetary policy, fiscal strategy, infrastructure renewal and structural reform. ‘The increase in interest from offshore participants, including traders, for both our equity and bond markets are positive signals that our messages are landing with our audiences,’ she says

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