Chris Kay

QUOTE Africa Group, a Cape Town-based company with licences to operate stock markets in Namibia and the Seychelles, expects an application to start a South African bourse to be considered next year.

South African Financial Exchange, a unit of Quote Africa, planned a new market for venture capital and small and medium-sized companies, company director Francois Venter said in a statement yesterday.

This should boost “accessibility for local and international investors to South African companies by providing lower listing and transaction costs”.

The company said it had applied to the Financial Services Board (FSB) for an exchange licence two years ago. The application was expected to be heard before the appeal board of the FSB early next year, Quote Africa added.

Quote Africa director Mark Wetherell declined to comment on the company’s appeal board application when contacted yesterday.

FSB spokesman Loganathan Ramalu could not immediately comment when contacted yesterday and said he would try to obtain more details from the regulator’s Financial Advisory and Intermediary Services unit.

Quote Africa said it had the backing of financial institutions, banks and brokers holding client assets worth R3.5 trillion.

It will be competing with the JSE, whose listed stocks have a market capitalisation of $493 billion (R4.2 trillion), according to Bloomberg data. JSE Limited operates the JSE and South Africa’s bond market, Africa’s largest bourses.

Quote Africa started its first securities exchange, clearing house and depository in the Seychelles on November 30, while its NamFin-X unit had received a conditional licence for a bourse in Namibia, which it expected to start in the third quarter of next year, the company said. – Bloomberg