MNG4804
ASSIGNMENT 2
DUE 2025
,MNG4804
ASSIGNMENT 2
DUE 2025
Financial Markets and Business Strategies in Africa: A 30-Year Perspective
Africa’s largest financial markets—South Africa’s JSE, Nigeria’s NGX, Morocco’s
Bourse de Casablanca, and Egypt’s EGX—have experienced transformative change
over the past three decades (1995–2025). Each has charted a distinct trajectory in
terms of market depth, regulatory environment, and macroeconomic resilience. The
following briefing analyzes their evolution, contrasts performance with GDP growth, and
draws strategic insights for investors and policymakers.
1.1 Market Evolution: Size, Sophistication, and Structural Reforms
South Africa: JSE – Institutional Leadership and ESG Pioneer
• 1995–2005: Already Africa's dominant exchange, the JSE doubled in market
cap—from $280 b to $566 b—through mining and finance sector expansion. The
introduction of electronic trading in 1996 surged liquidity and regulatory
robustness OMFIF.
• 2006–2015: The global financial crisis impacted the JSE sharply (23 % drop in
2008), but subsequent reforms enhanced governance and transparency OMFIF.
• 2016–2025: Market cap reached ~$1.6 t by 2022. The JSE is now a leader in
ESG and green bonds, though currency volatility and public debt create
headwinds OMFIF.
The JSE successfully transitioned to a platform with global credibility, yet persistent
structural inequality (30 % unemployment in 2023) limits the broader economic spillover
from strong market performance OMFIF.
, Nigeria: NGX – Frontier Resilience and Fintech Dynamism
• 1995–2005: Under $10 b in 1995, NGX was restrained by political risk and
shallow liquidity. Reforms in 2004–2005 improved the banking sector and market
activity Wikipedia+7Nigerian Exchange Group+7Proshare+7.
• 2006–2015: The 2008 crash saw a 60 % market decline, driven by oil-
dependence. Recovery followed with fintech acceleration and oil rebound
Nigerian Exchange GroupNairametrics.
• 2016–2025: NGX gained nearly 20 % in 2022 (4th-best globally) Nigerian
Exchange Group+8Nairametrics+8Proshare+8, with $3.2 b in fintech VC inflows
in 2021 OMFIF. Domestic investors now dominate, with 77 % participation
Proshare. However, high inflation, FX volatility, and illicit financial flows (~$2.2 b
lost in 2014) inhibit sustainable growth OMFIFNigerian Exchange Group.
Strategic insight: The NGX demonstrates rapid adaptability and fintech innovation but
remains highly vulnerable to macro-political instability and FX risks.
ASSIGNMENT 2
DUE 2025
,MNG4804
ASSIGNMENT 2
DUE 2025
Financial Markets and Business Strategies in Africa: A 30-Year Perspective
Africa’s largest financial markets—South Africa’s JSE, Nigeria’s NGX, Morocco’s
Bourse de Casablanca, and Egypt’s EGX—have experienced transformative change
over the past three decades (1995–2025). Each has charted a distinct trajectory in
terms of market depth, regulatory environment, and macroeconomic resilience. The
following briefing analyzes their evolution, contrasts performance with GDP growth, and
draws strategic insights for investors and policymakers.
1.1 Market Evolution: Size, Sophistication, and Structural Reforms
South Africa: JSE – Institutional Leadership and ESG Pioneer
• 1995–2005: Already Africa's dominant exchange, the JSE doubled in market
cap—from $280 b to $566 b—through mining and finance sector expansion. The
introduction of electronic trading in 1996 surged liquidity and regulatory
robustness OMFIF.
• 2006–2015: The global financial crisis impacted the JSE sharply (23 % drop in
2008), but subsequent reforms enhanced governance and transparency OMFIF.
• 2016–2025: Market cap reached ~$1.6 t by 2022. The JSE is now a leader in
ESG and green bonds, though currency volatility and public debt create
headwinds OMFIF.
The JSE successfully transitioned to a platform with global credibility, yet persistent
structural inequality (30 % unemployment in 2023) limits the broader economic spillover
from strong market performance OMFIF.
, Nigeria: NGX – Frontier Resilience and Fintech Dynamism
• 1995–2005: Under $10 b in 1995, NGX was restrained by political risk and
shallow liquidity. Reforms in 2004–2005 improved the banking sector and market
activity Wikipedia+7Nigerian Exchange Group+7Proshare+7.
• 2006–2015: The 2008 crash saw a 60 % market decline, driven by oil-
dependence. Recovery followed with fintech acceleration and oil rebound
Nigerian Exchange GroupNairametrics.
• 2016–2025: NGX gained nearly 20 % in 2022 (4th-best globally) Nigerian
Exchange Group+8Nairametrics+8Proshare+8, with $3.2 b in fintech VC inflows
in 2021 OMFIF. Domestic investors now dominate, with 77 % participation
Proshare. However, high inflation, FX volatility, and illicit financial flows (~$2.2 b
lost in 2014) inhibit sustainable growth OMFIFNigerian Exchange Group.
Strategic insight: The NGX demonstrates rapid adaptability and fintech innovation but
remains highly vulnerable to macro-political instability and FX risks.
