Small companies must be incentivised to return to South Africa’s stock exchanges
South Africa’s financial sector re-regulation has had the impact of empowering the big companies and is limiting entrepreneurship and junior activity on South Africa’s stock markets.
Even though this is an unintended consequence of the Jacob Committee Report of many years ago, the National Treasury is happy with the way South Africa’s R9-trillion worth of savings are directed by the Association of Savings and Investment of South Africa. In fact, the Treasury has provided the tax sweeteners that have resulted in the raising of those massive savings.
The National Treasury remains steadfastly unconcerned that mining, which has saved its bacon during Covid, has none of the incentives that stimulate vital exploration in other mining jurisdictions. South Africans must not stand by idly while the National Treasury persists in favouring only the big end of town. The consequence is that several companies mining South Africa’s resources, and looking for more, have their primary stock exchange listings in locations such as Sydney, London and Toronto. That tells you everything.
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