What’s front of mind when it comes to driving capital-market innovation in South Africa?
What’s front of mind for me is how South Africa can build deeper, more resilient capital markets without losing the strengths it already has. The country has credible market infrastructure, strong institutions and a sophisticated domestic investor base, which many emerging markets would envy.
The challenge now is to reduce friction – in issuance, trading and post-trade – while broadening participation in a way that attracts long-term capital rather than short-term flows. Global investors are very clear that transparency, governance and policy credibility matter at least as much as technology.
Innovation therefore has to be practical rather than cosmetic: better data, faster settlement, more efficient access for issuers and investors, and regulatory clarity that gives confidence over time.
If South Africa can combine modern market infrastructure with regulatory consistency and strong rule of law, it can position itself as a genuine gateway market, not just regionally but globally. That, ultimately, is what unlocks sustainable capital formation.
What does ‘building the next generation of capital markets’ really mean?
When people talk about next-generation capital markets, it’s easy to focus on new products or headline technologies, but the real shift is more fundamental. The next generation is about markets that are simpler to access, cheaper to use and more resilient under stress. That means modernising core infrastructure – data standards, clearing, settlement and reporting – so information flows more cleanly across the system.
The BIS has been very clear that data quality is now a form of financial stability infrastructure in its own right. It also means using technology selectively, not ideologically: cloud, AI and distributed ledgers where they genuinely reduce cost or risk, not where they simply sound innovative.
Just as important is governance. As markets become more automated and interconnected, operational resilience, cyber security and clear accountability frameworks become critical.
Finally, collaboration matters. Regulators, exchanges and market participants need structured ways to test and refine new ideas together. The goal isn’t complexity – it’s markets that work better, especially in periods of volatility.
What regulatory lessons should emerging markets take from elsewhere?
One of the clearest lessons from advanced markets is that strong foundations matter more than any single reform. The IMF and World Bank have consistently shown that disclosure standards, enforcement credibility and legal certainty are what anchor investor confidence over time. Emerging markets should also avoid overly prescriptive regulation that struggles to keep pace with innovation.
Risk-based, technology-neutral frameworks tend to be more durable. That said, there is real value in forging a different path. Emerging markets are not burdened by the same legacy systems and can often leapfrog directly to more digital, efficient infrastructure. Proportionality is also critical – importing complex regulatory regimes wholesale can unintentionally raise costs and reduce liquidity in smaller markets.
Another area where divergence can be beneficial is regional integration. By prioritising cross-border harmonisation and market linkages, emerging markets can achieve scale more quickly. The balance to strike is alignment with global standards, while retaining enough flexibility to reflect local market structure and development priorities.
How should markets balance rising retail participation with resilience?
The growing influence of retail investors is a structural shift, particularly in emerging markets, and it brings both opportunity and risk. Retail participation can improve liquidity and broaden the investor base, but global experience – well documented by the FT and BIS – shows how quickly sentiment can amplify volatility.
The right balance starts with market design. Access should be broadened through diversified, transparent products rather than excessive leverage or complexity. Conduct standards also matter, particularly around digital platforms, marketing and gamification. Education and disclosure need to be continuous and accessible, not treated as a one-off hurdle.
From a system perspective, market infrastructure has to be able to absorb surges in volume and volatility without failure, and supervisors need to rely more on real-time data rather than backward-looking reporting.
Encouraging innovation and protecting resilience are not opposing goals. Well-designed guardrails allow retail participation to grow in a way that strengthens markets rather than destabilising them.