JSE CEO Valdene Reddy says more money is being reinvested in South Africa, with the local equity market among the best performers globally.
South Africa’s equity market has seen strong growth since the 2024 National Elections. While most of the rise came from local investors, there has been increased investment from foreign investors.
Non-resident equity ownership on the JSE increased from 29.3% at the start of 2025 to 32.9% at the end.
Fixed income also remained attractive for foreign investors in 2025, with net foreign inflows into South African bonds standing at R122 billion.
While global markets have been heavily impacted by the war in Iran, Reddy said South Africa still offers strong appeal to investors.
Speaking in the latest PSG Think Big webinar, Reddy said that the JSE’s record R1 billion in profit for 2025 reflects a broader shift in perception, with renewed investor interest in South African assets.
“The appeal factor for South Africa has never been stronger, and it’s not just a regional play. At the moment, we are representing a credible investment profile as a country,” said Reddy.
On top of the formation of the GNU, Reddy said that the greater investor interest comes amid stronger public-private sector collaboration.
“We’ve seen systematic building of returns, with South Africa being one of the best performing markets globally for over 24 months,” said Reddy.
However, she cautioned that sustaining this momentum will require consistent delivery.
“The narrative has to be deliberate and sustained; we have to follow through with execution to actually have that high conviction investor sentiment shift to South Africa.”
On top of the improved sentiment, investors are shifting their behaviour, with a greater focus on global diversification.
“There’s a fundamental shift, where people are reinvesting back into South Africa,” Reddy said, pointing to a more balanced approach to global diversification without capital leaving the country.
Big changes for the JSE
The JSE itself is undergoing huge shifts, with greater focus on modernising technology and attracting a broader base of participants.
“We want to stay at the forefront of that so we can attract new investors,” she said, referencing including digital assets, retail investing platforms and changing capital-raising mechanisms.
Amid concerns over declining listings and subdued IPO activity in recent years, the CEO said that the pipeline for further developments is looking much stronger and of higher quality.
“There are alternative forms of capital raise,” she added. “We want to represent not just listings, but capital raising solutions for the ecosystem.”
The bourse also wants to balance ease of access for listings with strong governance, as well as investor confidence and protection.
The broader South African economy, however, remains a concern for the country. The nation is expected to see around 1%, but really needs to see over 5% to achieve its goals.
That said, the CEO is encouraged by the increased collaboration between the public and private sectors. “We feel we are actually pushing against an open door at this point in time,” she said.
There is growing recognition among government officials of the crucial role that capital markets play in driving economic growth.
