South African investors are navigating global uncertainty, political transition at home, shifting capital flows and rapid technological disruption, all while looking for growth, stability and confidence in the future of the economy.
Against this backdrop, the JSE has entered a new phase of leadership, with newly appointed Group CEO Valdene Reddy taking the helm at a moment defined by both opportunity and uncertainty.
In the latest PSG Think Big webinar, Reddy joined award-winning journalist Alishia Seckam to unpack the evolving role of the JSE, investor sentiment towards South Africa and the structural shifts shaping capital markets. The PSG Think Big series is aimed at promoting open dialogue and stimulating critical engagement on some of the country’s most pressing issues.
Reddy’s appointment comes at a time when the JSE has delivered a milestone performance, surpassing R1 billion in profit for the first time – a result supported by renewed investor interest in South African assets.
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This, Reddy says, reflects a broader shift in perception. “The appeal factor for South Africa has never been stronger and it’s not just a regional play,” she said. “At the moment, we are representing a credible investment profile as a country.”
She attributes this turnaround to a combination of political and economic factors, including the formation of the Government of National Unity and 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.”
Reddy cautions, however, 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.”
Alongside this improving sentiment, investor behaviour is also starting to shift. “There’s a fundamental shift, where people are reinvesting back into South Africa,” she noted, pointing to a more balanced approach to global diversification without capital leaving the country.
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A central pillar of this ambition is the JSE’s long-term strategy, Forge 2031. “We are making deliberate, future-focused investments to modernise our technology and reimagine the exchange for a rapidly evolving global landscape. Our objective is clear: to position the JSE at the forefront of structural change, ensuring we lead – rather than be displaced by – the forces of disruption, innovation and growth shaping global markets,” Reddy said. This includes adapting to new investment trends and attracting a broader base of participants. “We want to stay at the forefront of that so we can chart in new investors,” she said, referencing developments such as digital assets, retail investing platforms and evolving capital-raising mechanisms.
Despite concerns about declining listings and subdued IPO activity in recent years, Reddy says, “The pipeline is looking much stronger and of a much higher quality. Capital ultimately follows confidence, certainty and efficient market structure. Our role as the JSE is to ensure we provide all three of these.”
At the same time, the exchange is adapting to a more complex funding landscape. “There’s alternative forms of capital raise,” she acknowledged. “We want to represent not just listings, but capital raising solutions for the ecosystem.”
Balancing ease of access with strong governance remains a central challenge. “You want to have investor confidence and protection, but you also want to have an appeal factor that makes it easy for listings,” she said, pointing to recent reforms aimed at simplifying requirements while maintaining market integrity.
Technology – particularly AI – is another force reshaping the industry. Reddy sees it as both an enabler and a risk. “The potential is hard to ignore,” she said. “However, there are risks in any industry, so it’s a balancing act but you have to embrace it.”
Beyond market structure, broader economic conditions remain critical. Reddy highlighted South Africa’s growth trajectory as a key concern. “South Africa’s growth ambitions are sitting at 1-2% and we need to get that to be more than 5%,” she said. “It shifts the whole South African market success story.”
Encouragingly, she believes collaboration between the public and private sectors is improving. “We feel we are actually pushing against an open door at this point in time,” she said, signalling a notable shift in policy alignment and responsiveness. This, she noted, reflects years of engagement and growing recognition of the role capital markets play in driving economic growth.
Looking ahead, Reddy sees both domestic and continental growth as critical to the JSE’s future. “The potential for South Africa is here,” she said. “But the real global muscle will be if the continent mobilises as a collective – the potential in Africa is exponential.”
Ultimately, Reddy’s vision for the next five years centres on impact and innovation. “Our vision is to embed and to grow a globally relevant, resilient exchange of the future,” she concluded. “We don’t want to leave South Africa behind, and the JSE wants to lead from the front.”