OVERVIEW
Banking and financial services Cape Town has a stock exchange again. SECTOR INSIGHT Stockbrokers can stay in the Stock Exchange Hotel.
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Credit: The Woodstock Exchange
ape Town last had a stock exchange when the Anglo-Boer War chased financiers out of Johannesburg. This time, the owners of the 4AX stock exchange have willingly chosen Cape Town for its growing reputation as a home for tech startups and its traditional strength as the home of big asset management firms. Remarkably, the exchange has set up in The Woodstock Exchange directly opposite the Stock Exchange Hotel. Lebashe Investment Group owns 45% of the company. The choice to rebrand as Cape Town Stock Exchange also serves to set it apart from competitors such as A2X and ZAR X. Equity Express Securities Exchange is the other new exchange which has appeared on the South African financial landscape since 2017. The Western Cape’s evolution into a technology hub is also persuading banks, insurance providers, asset managers and venture capitalists to choose to relocate. There are more than 40 000 jobs in the technology sector (more than double the total of Nairobi and Lagos combined, Wesgro) and formal employment in the financial sector exceeds 50 000. Together with business services, the financial sector comprises the biggest contributor to the provincial economy. According to Wesgro, 75% of the venture capital deals that happen in South Africa originate in the Western Cape. Most financial firms based in Cape Town have a long history, some going back as far as 1845 when Old Mutual started. One of the most successful disruptors in recent times has been Stellenbosch-based Capitec Bank, which is steadily increasing its
ONLINE RESOURCES Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa: www.iisa.co.za South African Institute of Chartered Accountants: www.saica.co.za
GAUTENG BUSINESS 2020/21
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customer base by providing banking for business and individual customers in what it describes as a simple manner. Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour. The African Institute of Financial Markets and Risk Management (AIFMRM) aims to meet the demands for skills by developing local talent. It is supported by the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty. The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Futuregrowth and Coronation (N ew lan ds), Pr u d ential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Insurers such as Santam and Metropolitan Life are based in Bellville. Nomura, a Japanese financial holding company, has a presence in the Cape through Nomura South Africa which offers investment banking services. ■
