With links to both developed and emerging economies, South Africa is uniquely positioned to thrive in an increasingly multipolar world. Dr. Leila Fourie, Group Chief Executive Officer of the Johannesburg Stock Exchange, discusses how South Africa is turning complexity into capital.
Interviewed by Klara Marie Schroeder
In a multipolar world with rising powers across the globe, the role of the exchange has become more strategic than ever. The African continent will reach a population of 2.5 billion by 2050, accounting for approximately 25% of the global population. It will be a major center of demand.
Through the Johannesburg Stock Exchange (JSE), South Africa is at the nexus of this shift. We are among the top 20 global exchanges and account for over half of Africa's listed equity markets, with a total market capitalization of more than a trillion dollars across listed entities. All JSE shares delivered a 29% return in the first half of 2025, measured in US dollars, placing us among the top five performing exchanges in the world. However, we have also seen outflows and volatility in international equity flows.
To fully realize the opportunities in a multipolar world, two imperatives are clear to us: Domestically, we must be supported by strong foundations - particularly credible fiscal reforms and sound policy. Inflation is now back within the target range of 3% to 6%, and we are seeing arise in business confidence as national energy constraints begin to ease. Internationally, we must remain agile as US tariff risks, de-dollarization, and protectionism reshape global capital flows. South Africa's presidency of the G20 presents an excellent opportunity to champion multilateralism, financial system reform, and equitable access to capital.
With links to both the BRICS and Western economies,South Africa is highly relevant for investors navigating geopolitical uncertainty. We are not on the sidelines of the global reordering; we are in the middle of it. And we are building the infrastructure, diplomacy, and financial tools that will turn complexity into capital. South Africa has always been a bridge between worlds - and today, that role matters more than ever.
There is strong potential for deeper financial market integration, both within the BRICS and across the broader global economy, and South Africa is well positioned to play an important role. As emerging markets, BRICS members share common goals: deepening capital markets to improve liquidity, finance sustainable infrastructure, and reduce reliance on external currencies. Much of the groundwork is already in place. The BRICS Exchange Alliance, launched in 2012, enables the cross-listing of index derivatives, allowing investors to access BRICS equity markets in local currencies. This was a pioneering step that expanded access and built trust across jurisdictions.
South Africa plays a strategic role as a consensus builder. We engage constructively with all parties, giving us political and diplomatic flexibility to align BRICS integration with global systems - not to fragment them. At the JSE, we are committed to market innovation through collaboration. We champion sustainability-linked instruments and promote regulatory harmonisation to enable cross-border capital mobilisation.
South Africa’s G20 presidency in 2025 offers an excellent opportunity to elevate these priorities. It connects BRICS ambitions with global financial governance reform and inclusive capital access. We do not just sit at the BRICS table; we extend it. South Africa is the bridge connecting capital, continents, and the future of finance.
Concerns about African exchanges often stem from outdated perceptions of the continent. At the JSE, we have moved far beyond those narratives. Today, we offer a trusted, resilient, and globally connected market infrastructure that actively enhances liquidity, manages volatility, and leads on transparency.
Liquidity is rising rapidly. In 2025, our average daily equity trading value reached between $2 billion and $2.5 billion - a record high and a 29% increase from the previous year. Our Top 40 Index hit all-time highs, reflecting renewed investor confidence. In the bond market, we recorded over $1 trillion in trades year to date - a 14% increase. We are also expanding access and integration. The Africa Exchanges Linkage Project (AELP), co-led by the JSE, now includes seven major African exchanges. It enables seamless cross-border trading across more than 2,000 listed companies, representing a combined market capitalization of $1.5 trillion. Dual listings – from Europe to Asia - are also gaining traction, including deeper cooperation with other emerging market exchanges and regional index builders. Our technology infrastructure is future-ready. We have migrated to cloud-based architecture to enhance speed, resilience, and uptime.
Volatility is well managed. We deploy globally recognized safeguards - including circuit breakers, risk monitoring systems,and robust clearing protocols - all backed by a stabilizing macroeconomic environment. Inflation has eased, and policy coordination is improving.
Transparency is non-negotiable. All listed entities comply with IFRS and the King IV code. We are among the first African exchanges to fully align with the ISSB’s IFRS S1 and S2 standards, enhancing ESG disclosures and climate-related reporting.
We operate under South Africa’s Twin Peaks regulatory model, which ensures dual oversight from the Financial Sector Conduct Authority and the Prudential Authority (under the South African Reserve Bank). This model, along with our alignment with IOSCO and World Federation of Exchanges frameworks, provides global investors with confidence in our governance and market integrity.
In short: liquidity is growing, volatility is well managed, and transparency is deeply embedded. We are not reacting, we are leading. And the data confirms it: we have modernized our infrastructure, raised disclosure standards, and improved access. The result is deeper, more trusted, and more connected markets - by design, not by chance.
This is a very interesting question - and highly relevant in the South African context. In my opinion, the most effective regulation is not imposed. It is co-designed. In South Africa, we have built a culture of structured, ongoing collaboration between government and business - and it delivers results. A flagship example is the Twin Peaks regulatory model I mentioned before, implemented in 2017. Developed through deep consultation with the industry - including the JSE - it formalized a system of dual oversight: the Prudential Authority for financial stability, and the Financial Sector Conduct Authority (FSCA) for market conduct. The result is robust regulation without stifling innovation. South Africa’s fintech adoption, mobile payments growth, and advanced market infrastructure have all flourished within this framework.
At the JSE, most of our regulatory innovation is grounded in this cooperative model. Our sustainability segment and transition bond frameworks were developed jointly with National Treasury and market participants and aligned to global benchmarks such as the ISSB and TCFD - ensuring both local credibility and global interoperability. By Q1 2025, 95 sustainability-linked bonds had raised 10.5 billion South African rand - about half a billion US dollars. We are also active in regulatory sandboxes focused on carbon, crypto, and fintech. And we collaborate with peers across Africa and BRICS to harmonize disclosure rules, enable cross-listings, and build common ESG taxonomies.
I do not just advocate for this approach; I actively participate in it. As a board member of the UN Global Compact, a contributor to the UN Sustainable Stock Exchanges Initiative, and a co-chair of South Africa’s G20 task forces, I aim to align regulation with business insights - both domestically and globally.
Whether we are shaping climate disclosures or building talent pipelines, the principle remains the same: co-create to future-proof. In short, when regulation is built through collaboration, it delivers more than compliance - it drives growth, innovation,and inclusion. South Africa is not just regulating for today; we are designing the frameworks for tomorrow’s opportunities.
Capital markets have a central role to play in the energy transition - and at the JSE, we are helping to lead that transformation. This means building critical platforms, market-based incentives, and data infrastructure to move capital where it is needed most, and at the pace climate science demands. We do so in five ways.
First, by financing the transition. Our sustainability segment, launched in 2017 with Africa’s first green bond, now hosts 95 green, social, transition, and sustainability-linked bonds, raising over R 38 billion to date. In 2025 alone, 15 new bonds raised R7 billion for climate-aligned infrastructure - funding solar plants, water resilience, and low-emission transport, all with verified impact linked to repayment.
Second, by pricing carbon. In 2023, we launched South Africa’s first voluntary carbon market,aligned with the national carbon tax and integrated with global systems like Expansive. Our first 2025 trade priced 10,000 tonnes of CO₂ at $8.25, generated by local renewable projects. Most current developers focus on solar, wind, and I-RECs, indicating a strong pipeline depth and energy transition alignment.
Third, by bridging early-stage financing gaps. JSE Private Placements connect private capital with emerging developers and SMEs, often the “missing middle” of the transition. In 2023, 20% of raised capital supported clean energy, recycling, and circular economy projects. We also link DFIs and concessional funders with developers needing catalytic early-stage support, helping de-risk and structure investments for scale.
Fourth, by improving information and investor confidence. Climate capital requires trust. Our Sustainability and Climate Disclosure Guidance is now fully aligned with IFRSS1 and S2. Nearly 300 listed companies report using global frameworks like TCFD and GRI - enhancing transparency, comparability, and confidence.
Fifth, by aligning with international coalitions. We work with the National Treasury and the Department of Environment on Article 6, carbon tax design, and the Green Finance Taxonomy. Internationally, I serve on the UN Global Compact Board and co-chaired the SSE Climate Disclosure Workstream. The JSE also plays leadership roles in the UNGISD Alliance and the WFE Sustainability Working Group.
These partnerships ensure that South Africa’s domestic market infrastructure meets global investor expectations - and that Africa helps to shape, not just follow, international climate finance norms. The transition will not be funded by aspiration. It will be funded by markets that work. And that is what we are building at the JSE.
At the JSE, we know that building a viable carbon market takes more than just ambition. Globally, many exchanges have tried and struggled, often due to misaligned regulations, weak incentives, or fragmented infrastructure.
We took a fundamental approach: building from the ground up with a focus on trust, regulatory compliance, and infrastructure quality. We partnered with the world’s largest environmental markets infrastructure provider to ensure global reach and liquidity from day one. This is not a speculative platform – it is a transparent, policy-linked marketplace rooted in the real economy. It is designed to support the de-carbonization of South African and African firms and connect with Africa’s emerging role in global carbon markets.
We have prioritised infrastructure quality over volume. Looking ahead, we are focusing on expanding supply, aligning with the Paris Agreement, and investing in product innovation.
There is certainly a real gap between perception and reality. Outdated narratives about scale, sophistication, performance, and risk persist. Let me start by addressing the five most common misconceptions:
The first misconception is that South Africa and African markets are too small to matter. In fact, the JSE is Africa’s largest exchange, with a market cap of over $1 trillion. South Africa accounts for just 15% of Africa’s GDP but two-thirds of its listed equity value. In 2025, daily trading averaged $1–1.5 billion, supported by deep, liquid markets.
The second misconception is that South Africa lacks financial sophistication. In fact, South Africa has one of the most advanced infrastructures among emerging markets. The JSE is fully demutualized and listed, supports multi-asset trading, and operates under globally aligned regulation. The Twin Peaks model ensures robust oversight, and the King IV code is internationally respected. Over 30% of the JSE market cap is dual-listed.
The third misconception is that the economy is overly reliant on mining. Mining is just 5% of GDP, while financial services contribute more than twice that. Telecoms, retail, and tech are major growth drivers. Firms like MTN, Naspers, and Shoprite are listed, and two-thirds of Top 40 earnings come from outside South Africa.
The fourth misconception is that South African assets underperform. In the second half of 2024, the JSE Top 40 outpaced the MSCI Emerging Markets Index and global indices by around 9%, driven by reforms and re-rating. The market delivers consistently high dividends and real bond yields. Between 2000 and 2016, it achieved 7.2% annual real equity returns. After a difficult period from 2016 to 2021, performance is rebounding.
Finally, there is a persistent misconception that South Africa is too risky. While challenges exist, we have strong institutions: an independent judiciary, a free press, and a credible central bank. The current coalition government has further helped to restore policy stability and investor confidence, leading to renewed capital inflows and optimism.
Perceptions often lag behind progress. South Africa offers the infrastructure of a developed economy and the upside of an emerging market growth story - combining scale, credibility, and opportunity.
One of the most persistent misconceptions is the overstatement of sovereign risk across the continent. Sovereign ratings often reflect perceived - rather than actual - risk, with a bias toward qualitative factors. When countries do default and recover, rating agencies are slow tore-rate them. That lag creates a feedback loop: inflated risk profiles lead to higher borrowing costs, especially for dollar-denominated debt, which in turn limits growth potential.
I would urge institutions – whether it is investors, credit rating agencies, or media - to approach Africa with more nuance and less generalization. Each country is unique, and Africa’s youthful population and growth trajectory mean its global relevance will only increase. More balanced, data-driven narratives are not only fair - they are long overdue.
Dr. Leila Fourie is Group Chief Executive Officer of the Johannesburg Stock Exchange (JSE), where she brings her three decades of experience in the financial sector to shape the exchange's strategic vision. She is also a board member of the UN Global Compact, a contributor to the UN Sustainable Stock Exchanges Initiative, and a co-chair of South Africa’s G20 task force.
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