Established literally in a tent on the side of the mining camp that would ultimately develop into the financial capital of Africa, the JSE has been synonymous with the development of modern industrialised South Africa, living every twist and turn; civil wars, world wars, cold wars, colonialism, decolonialism, neocolonialism and even a couple of global pandemics – albeit 100 years apart. 

Throughout its history, the JSE has produced returns for its investors that have literally been world-beating: between 1900 and 2016, the annualised real return on South African equities was 7.2%. This was better than 23 other countries, including the US, the UK, Germany and Japan, according to a study by the Credit Suisse Research Institute and the London Business School.

Local equities fared even better, delivering even better real returns of 8.2%. Our history of the little moments has been just as dramatic for those of us intimately involved in it: from literally beginning as an open outcry exchange to one that not only became silent, but virtual and remote too during the Covid-19 lockdown in 2020.

There are many other highlights, among them the introduction of SENS and electronic trading; the launch of the SRI index, followed by the FTSE/JSE responsible investment index, and the development of the unit trust market which allowed ordinary people to take part in the investment world. These innovations and interventions have been matched by our series of acquisitions, including the South African Futures Exchange (Safex) and the Bond Exchange of South Africa, as well as our ongoing collaborations with international exchanges in London and New York, leading to dual listings to the benefit of both the companies and investors.

Perhaps the greatest display of our own belief in the value of what we do was our demutualisation in 2005 and subsequent successful listing of the JSE on its own bourse. The need to continually evolve is driven by our passion to be future-fit; sufficiently agile to be able to identify the challenges of new developments, provide solutions for them and always remain responsive to the needs of our stakeholders: investors, listed companies and financial institutions, here and across the world. 

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This is a philosophy that underpins our most recent acquisitions and initiatives such as JSE Investor Services, JSE Clear and the Johannesburg Private Placements (JPP) platform. The JPP was set up to attract potentially game-changing investments through connecting investors directly with private issuers using next-generation technology. It is part of our broader JSE SME Solutions which fast-tracks the development of small business through the JSE Entrepreneur Accelerator Programme and the incubator of incubators. 

We fundamentally believe in the latent power of this sector to grow the economy after the ravages of the pandemic and radically transform it in the process. But, more than that, we want to make a real contribution to unlocking this potential. When we talk transformation, it’s not just about the broader South African picture, but the smaller one too. 

Learning from history

When the JSE started its journey of facilitating the raising of capital to fund the development of South Africa in 1887, this country was very different in almost every respect to what it is today. Just as the country has changed, so too have we, in myriad ways, internally. We have often led the way in this regard in corporate South Africa, and have been acclaimed for this, locally and internationally. 

At the JSE, sustainability is a key factor in what we do; from leading the Global Investors for Sustainable Development Alliance, to introducing green and gender-linked bonds, as well as a Smart City Infrastructure Feeder Exchange Traded Fund, helping transform both the economy in which we work and the towns and cities in which we live.

Taking stock at a time like this allows us to plot our way forward by looking at the map to see where we have come from. There are many lessons we can and should learn, if for no other reason than to observe the old adage that those who do not learn from history are condemned to repeat the very same mistakes. As Business Maverick editor Tim Cohen noted earlier this month (1 November 2022): “The JSE is about the 20th-largest exchange in the world, but South Africa is the 40th-largest country in nominal GDP terms. That disjunction is remarkable and almost unheard of around the world.”

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It’s a very true and honest testament to our history and the achievements of this institution. But there is an immense amount of work still to do. 

As Cohen also notes, the number of companies listed on our boards has declined precipitously over the past 30 years. It is yet another compelling driver for our ongoing innovation and continuing evolution to remain relevant and vital to the sustainable growth of the South African economy, while playing an increasingly significant role across Africa and globally too. 

Those of us at the JSE today, in its 135th year, stand on the shoulders of all who went before us. Our responsibility to them is to build on the legacy that they bequeathed us for those who come after us. I am confident that we will. BM/DM

DRDGold (1895) is the oldest listed company to date.