MNG4804
ASSIGNMENT 2
DUE 2025
,MNG4804
Assignment 2
Due 2025
EXCEPTIONAL ANSWERS
Financial Markets and Business Strategies in Africa
1. Functionality and Performance of Africa’s Four Largest Financial Markets
(1995–2025)
1.1 Strategic Overview: Market Scale Meets Economic Impact
Africa’s four most influential stock exchanges—Johannesburg (JSE), Nigeria (NGX),
Morocco (Bourse de Casablanca), and Egypt (EGX)—have undergone
transformative evolutions since 1995. Together, they reflect the continent’s multifaceted
financial narrative: from post-colonial liberalization and commodity supercycles to
fintech revolutions and ESG-aligned capitalism. Evaluating their development through
market capitalization, liquidity, regulatory maturity, and economic correlation, we
uncover not just growth trajectories—but the deeper structural engines and bottlenecks
shaping Africa’s financial destiny.
1.2 Dissecting Three Decades of Market Functionality
🇿🇦 South Africa (Johannesburg Stock Exchange - JSE): The Global Gateway
• 1995–2005: Institutional Maturity Amid Early Digitalization
❖ With roots dating back to 1887, the JSE transitioned into a post-apartheid,
globally respected bourse. The electronic trading system (SETS)
launched in 1996 revolutionized speed, transparency, and efficiency—
preceding many developed market reforms.
, ❖ Market cap surged from $280B to $566B, fueled by dual-listed mining
giants (e.g., Anglo American, BHP) and world-class financial institutions.
❖ Early compliance with ISDA and IFRS cemented the JSE's global
investment appeal.
• 2006–2015: Crisis, Consolidation, and Compliance
❖ The 2008 GFC saw the All-Share Index fall 23%, exposing liquidity
fragility. However, the JSE bounced back faster than peers, thanks to
strong institutional frameworks.
❖ Introduction of King III corporate governance code and a move to T+3
settlement added depth and trust, with market cap exceeding $1.2T by
2015.
• 2016–2025: ESG Ascendancy and Digital Frontiers
❖ Despite high public debt (74% of GDP in 2023) and currency volatility,
the JSE has pushed into green finance, issuing $1.3B+ in green bonds
since 2019.
❖ Tokenized securities, regulatory sandboxes, and pan-African fintech
partnerships (e.g., with Kenya’s CMA) place the JSE at the continental
cutting edge.
❖ Market cap peaked near $1.6T in 2022, though growth is slowing amid
domestic economic stagnation.
Expert Insight: The JSE’s world-class tech and regulation contrasts sharply with
domestic inequality and economic inertia, signaling the dangers of a bifurcated financial
economy.
ASSIGNMENT 2
DUE 2025
,MNG4804
Assignment 2
Due 2025
EXCEPTIONAL ANSWERS
Financial Markets and Business Strategies in Africa
1. Functionality and Performance of Africa’s Four Largest Financial Markets
(1995–2025)
1.1 Strategic Overview: Market Scale Meets Economic Impact
Africa’s four most influential stock exchanges—Johannesburg (JSE), Nigeria (NGX),
Morocco (Bourse de Casablanca), and Egypt (EGX)—have undergone
transformative evolutions since 1995. Together, they reflect the continent’s multifaceted
financial narrative: from post-colonial liberalization and commodity supercycles to
fintech revolutions and ESG-aligned capitalism. Evaluating their development through
market capitalization, liquidity, regulatory maturity, and economic correlation, we
uncover not just growth trajectories—but the deeper structural engines and bottlenecks
shaping Africa’s financial destiny.
1.2 Dissecting Three Decades of Market Functionality
🇿🇦 South Africa (Johannesburg Stock Exchange - JSE): The Global Gateway
• 1995–2005: Institutional Maturity Amid Early Digitalization
❖ With roots dating back to 1887, the JSE transitioned into a post-apartheid,
globally respected bourse. The electronic trading system (SETS)
launched in 1996 revolutionized speed, transparency, and efficiency—
preceding many developed market reforms.
, ❖ Market cap surged from $280B to $566B, fueled by dual-listed mining
giants (e.g., Anglo American, BHP) and world-class financial institutions.
❖ Early compliance with ISDA and IFRS cemented the JSE's global
investment appeal.
• 2006–2015: Crisis, Consolidation, and Compliance
❖ The 2008 GFC saw the All-Share Index fall 23%, exposing liquidity
fragility. However, the JSE bounced back faster than peers, thanks to
strong institutional frameworks.
❖ Introduction of King III corporate governance code and a move to T+3
settlement added depth and trust, with market cap exceeding $1.2T by
2015.
• 2016–2025: ESG Ascendancy and Digital Frontiers
❖ Despite high public debt (74% of GDP in 2023) and currency volatility,
the JSE has pushed into green finance, issuing $1.3B+ in green bonds
since 2019.
❖ Tokenized securities, regulatory sandboxes, and pan-African fintech
partnerships (e.g., with Kenya’s CMA) place the JSE at the continental
cutting edge.
❖ Market cap peaked near $1.6T in 2022, though growth is slowing amid
domestic economic stagnation.
Expert Insight: The JSE’s world-class tech and regulation contrasts sharply with
domestic inequality and economic inertia, signaling the dangers of a bifurcated financial
economy.
