Public Investment Corporation(PIC), one of Africa’s largest investment managers, with assets under management in excess of R1.9trn, has invested in ZAR X on behalf of the Government Employees Pension Fund (GEPF).

ZAR X is a newly-licensed stock exchange founded on using technology to remove existing high barriers to entry, reduce costs, and save time while introducing new opportunities for investors and issuers alike.

Deon Botha, Head of Corporate Affairs at PIC, said: “We are very excited about our association with the ZAR X stock exchange. This transaction provides us with an opportunity to own a portion of the stock exchange whilst at the same time affording us an alternative platform from which to trade and on which to list.” 

“This will further assist us in our resolve to bring about meaningful change in and transformation of the domestic capital markets and overall financial services industry landscape. We believe that transformation of this industry is necessary if we are to realise our long term objective of achieving real and tangible inclusive growth,” he added.

ZAR X represents a watershed in the financial markets. 

It was South Africa’s first new stock exchange in 58 years and  
is the only fintech in the country operating as a stock exchange - and the only one focused on enabling financial access and inclusion.

Etienne Nel, ZAR X CEO, said: “The acquisition by PIC of a shareholding in ZAR X is a vote of confidence in the exchange’s innovative business model and its ability to influence the capital markets efficiently. The joint venture will be to the advantage of the full spectrum of South Africans and will facilitate the development of new industries that will expand the economy while removing the social, cultural, and commercial barriers to investment capital for people and businesses alike.”

“Having a partner of this stature and reputation positions ZAR X ideally to make a major impact on the sector.”

Nel added that ZAR X and the PIC share a common vision of promoting financial inclusion and stimulating developmental investment.

“Both organisations also emphasise innovation in order to enable broad financial access and inclusion and to introduce long-awaited competition to grow the capital markets,” he said.

“In addition, ZAR X is keenly focused on the reduction of systemic risk in the financial markets. Our partnership therefore encapsulates a shared operational ethos of rigorous governance processes, diligent risk analysis, and the application of intelligent compliance practices,” he added.