Banking and financial services

Cape Town has a stock exchange again.

Credit: The Woodstock Exchange

Cape 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 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 (Newlands), Prudential (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. ■

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 SECTOR INSIGHT Stockbrokers can stay in the Stock Exchange Hotel.

Bank on Standard Bank Trade to grow your business

Building a secure and trusted environment for trade and traders.

Trade is a key cornerstone of economic growth and prosperity. The revitalisation of trade, both locally and internationally, will be integral to South Africa’s economic recovery from Covid-19. Trade allows for the flow of cash in our economy and as a result helps to drive economic prosperity, job creation and long-term stability.

With Trade by Standard Bank, we aim to be a partner in your growth journey and can help create a secure and trusted environment for you to trade.

This includes the following: • Introductions to new vetted potential buyers – locally and around the globe. • Assistance with diversifying your supplier base and products through access to new international, vetted suppliers. • The provision of working capital finance. • Mitigation of risks of non-delivery and non-payments from customers and foreign currency fluctuations. • A single point of contact to assist in all your importing needs, including all-in costing, logistics facilitation, product track-and-trace services, payments, foreign exchange covers and customs clearing.

Banks play a critical role in helping small and medium businesses trade either their services or goods, both in the local and international markets.

The importance of digital transformation in trade, as in most other sectors, cannot be overstated. It creates efficiencies and breaks down barriers to entry – linking suppliers and customers all over the world and allowing for the creation of new supply chains. It is through digitisation and the growth enablement it allows, that has led Standard Bank trade to devise new and differentiated solutions for customers:

Trade Club There are two big environments where technology can help businesses: access to information and access to funding. It also increases the efficiency and the speed with which you can gain this access.

Often the biggest inhibitor of trade is the ability to find trusted and vetted counterparts to trade with.

Trade Finance Standard Bank’s Trade Finance allows you to expand and mitigate risks that could stand in your way. This service will help to maximise your profit by bolstering your cash flow, collecting outstanding payments and strengthening your working capital cycle.

Trade Suite Local regulations and compliance issues can be inhibitors to trade. Clients are often unaware of the complexities of the movement of goods, including engaging with shipping lines and harbour officials on the import and export process.

These solutions allow Standard Bank to play a vital strategic role in our clients’ sustainable business growth – both locally and internationally. We are able to leverage this position and knowledge of our clients’ businesses and local markets to give them the bespoke advice they need ■