Nicky Newton - King

FDI Spotlight: Cas Coovadia from the Banking Association asked: “Can the financial sector services act as the shining light to strengthen international investment and address the attitude of investor confidence in South Africa?” What are your thoughts on this?

Nicky Newton-King: The financial services sector is leading by example, which is why it is the shining light within our diversified economy. It is driven by the latest technologies and understands it is the only way to move forward in the Fourth Industrial Revolution. The sector set the bar and is keeping it there, making sure that others know that anything less is unacceptable.

I think the financial sector and financial markets have an example role to play, specifically when it comes to access to capital. The JSE, for example, needs to make businesses ask “how can we open this market up to the smaller guys?”

What, according to you, are the positive attributes about South Africa that will always be there, even during turbulent times?

Nicky Newton-King: Our democracy is loud and our people know their rights. South Africans have created dramatic political change without a lot of violence or riots. All our different cultures are living and working together, talking openly about the challenges we face and how we can move on from a terrible past. There is so much hope and opportunity here, and South Africans are not afraid to voice their opinions and stand their ground.

What would you identify as the role of the JSE as stabilising South Africa’s financial landscape?

Nicky Newton-King: Any exchange is at the centre of a country’s market, and a stable, well-regulated and well-managed exchange is absolutely crucial for any country and its economy. Therefore our role as the JSE is to make sure that any and all capital markets we manage are done in such a manner that it benefits our local and international stakeholders. It is a critical role, and one we take extremely seriously.

I myself have gotten some very interesting and amazing compliments from people about the general energy here, which I think attributes to our work. People often say that there is a certain energy here at the JSE that looks like we got it right, that we have what it takes. You go faster if you have some energy, and I think we do put a sparkle in our employees’ eyes that make them want to do the best they can do and want to go the extra mile; and that is what, I think, gives the ability to do anything and to help improve South Africa.

What are some of the newest developments and ways in which you are embracing the new digital economy?

Nicky Newton-King: All exchanges of meaning today are done so through a technological means. It means that we can offer the access to capital, information to investors, and any updates through a digital platform. Therefore it is all about robust, industrial strength and high-speed internet connection and technological facilities which can maintain what we do. It is very important that all businesses realise that.

We continually update the systems we have, and I do believe that the next steps regarding technology are in the post-investment processes. We need to start educating our investors on new processes and – very importantly – we need to start using technology for financial education and to start closing the financial inequality gap.

It is very easy to educate people on sophisticated financial services and products, but we need to educate those South Africans who do not know or understand why you need to have a savings account or what your debit or credit card can really do for you.

Why do you believe international investors should come to South Africa?

Nicky Newton-King: South Africa is a world class emerging market. It does have its noise and challenges, such as social inclusion and growth. However, we have world class institutions, leadership and people.

The JSE is here to be a trusted, world-class leader and regulator and we have the things and individuals to do it. I believe that many institutions in South Africa has the same and can do the same. The roadshows we have done have been very successful and through them, institutions have been getting the recognition for the positive things they have done. This has been a long time coming, and I am very happy that we have been able to make that happen.

Many people within the country as well as outside focus on the past; it is true that we cannot look to our future without looking at the past, but we also need to understand that we need to – at some point – leave the past where it is and continue to move forward.

While we face some challenges, South Africa has strong institutions, hard workers and positive leaders. The systems we have in place keeps us moving forward, which is important. The country is the springboard into Africa, and investors can be sure of great returns.

At the World Economic Forum (WEF) Davos in 2016 we were recognised as having the second most well-governed and transparent financial services system in the world. This shows an international investor that even if you are the in the most southern part of Africa, you can still be world class. An international investor will never have to worry about the regulatory environment, protection, or the technology used when they are investing through the JSE.

The only thing they will have to think about is whether or not they like the investment they are putting their money into. Being world-class is in our DNA and we have worked very hard to continually rework and improve our DNA to make every aspect of what we do seem that way.

This is a forever journey; you continually compete with other markets, especially those markets at home and the last we want an investor to say that is it because of the exchange that they are not putting their money in South Africa.