Today, we proudly welcomed EasyEquities Balanced and Global Equity Actively Managed Exchange Traded Funds (AMETFs) to our Main Board.
The EasyEquities Balanced ETF aims to achieve moderate capital appreciation by following a quantitative and qualitative long-term equity strategy and the Global Equity ETF portfolio will primarily be invested in securities listed on recognised exchanges around the world.
“By offering actively managed ETFs, we are not only meeting the current demands of the market but are also anticipating future trends and reaffirming our position as a leader in the global financial landscape. This is in line with the JSE’s strategic goals, which guarantee our ongoing effort to launch innovative products for the global market, serving as a gateway for both local and international investments, for Africa and beyond.” - Helina Andhee, CFA, our Head of Trading
Jokes aside, one of the most striking realities I have witnessed over the past (almost) decade building insights and data on opportunities and business in hashtag
#Africa is the degree of alienation of major brands towards the continent (brands who surely have the resources to invest, that is). What's worse is that these companies, funds, and organisations would actually be keen to enter these markets but often lack visibility into local opportunities due to internal practices that neglect the presence of information providers.
Despite the work organisations like Briter and global media organisations such as The Economist do, the knowledge gap remains too vast to be able to capture the immense diversity of opportunities in these markets.
The Economist is thus not wrong. More data, more awareness, more advocacy are crucial to move the needle.
Emerging market equities are on a rally. They, however, remain cheap from a relative pricing perspective in comparison to their historic means. At current valuations it seems that the entire market is attractive. A line of thinking that has erased wealth than most others. A long-winded way of saying:
It's a great time to buy the right stocks.
Here’s a look at some great moments from Day 1’s networking drinks at The Africa Shared Value & ESG Summit!
The decline of African capital markets is a serious issue with many causes. The evidence is the declining number of listings and the complete absence of capital raising through stock exchanges. First, high inflation and heavy government borrowing block equity markets growth. This limits private capital investment. Next, the cost of trading shares is high, which stops people from buying and selling as often as they might.
Market structures are also unbalanced. Foreign investors face limits, fx and tax costs are high, and there is too much regulatory interference. These issues lead to low liquidity, so companies have small, narrow groups of shareholders. Poor investor relations practices make things worse because investors don’t get enough information or access to easy cost-effective trading. This lowers overall trust and makes people less likely to invest.
Due to low trading, shares are undervalued, and company-led share buybacks take even more shares off the market. This further limits trading and weakens liquidity.
Finally, many companies decide to de-list, which reduces the number of options for investors. Markets go backwards.
No listings, no capital raising, no investment.
If these structural problems continue, they will hurt the health and future of African public capital markets.
There is an anti-dote, of sorts.
Big News for Zambia's Stock Exchange!
The Lusaka Securities Exchange Plc (LuSE) and Financial Sector Deepening Africa (FSD Africa) have signed a historic MoU to revise LuSE Rules!
What does this mean?
Streamlined operations
Increased market participation
Alignment with global sustainable finance trends
Capacity-building initiatives
Boost to listings, trading, and wealth creation
This partnership will enhance Zambia's capital markets, creating jobs, reducing poverty, and driving prosperity!
LuSE CEO, Nicholas Kabaso: "This initiative will accelerate listings, enhance trading, and foster wealth creation for investors."
FSD Africa CEO, Mark Napier "We're proud to support LuSE in strengthening Zambia's capital markets."
Our hashtag
#CapitalMarkets progress report is here! As one of the key highlights of our two-day hashtag
#SustainableCapitalMarketsConference, we unveiled our latest progress report, highlighting milestones achieved through our catalytic work in hashtag
#Africa’s capital markets.
Some of our key achievements include:
💰 Catalysing $1.2 billion in sustainable local currency capital
💼 Launching the Dhamana Guarantee Company for credit enhancement
🚰 Issuing hashtag
#Tanzania’s first water bond to fund critical infrastructure
🤝 Establishing the Pan-African Fund Managers Association (PAFMA) and Africa Pension Supervisors Association (APSA) to strengthen market collaboration
Why capital markets matter:
Capital markets are a powerhouse for hashtag
#EconomicGrowth, unlocking access to essential finance for both the public and private sectors to address hashtag
#biodiversity loss, and more. By fostering local currency capital markets, we can reduce currency risks and build a resilient financial ecosystem that’s equipped to withstand external shocks.
The report's key themes include financing solutions for hashtag
#ClimateAction, and biodiversity; bridging Africa’s financing gap by mobilising private domestic capital and deepening local capital markets to meet critical funding needs; and empowering Africa’s financial markets with tools and resources for large-scale impact.
