SA’s listed universe is shrinking — steadily and significantly. From a peak of more than 700 companies in the early 1990s, the JSE today hosts fewer than 300. This decline reflects a change in market forces and has real consequences for capital formation, long-term investment and the broader health of the economy.
Capital markets play a central role in channelling savings into productive enterprises. They are a cornerstone of pension fund performance, enabling broader ownership and supporting innovation and transparency in the corporate sector. SA is not short on capital — retirement assets stood at R5.84-trillion at the end of 2023 — but the diminishing number of investable, listed companies is narrowing the options for local asset managers and savers alike. As the pool of issuers contracts, so too do the benefits that come with active markets: price discovery, liquidity and robust corporate governance.
Globally though, equity markets are regaining momentum. In the first half of 2025 more than 530 companies raised $61.4bn through initial public offers (IPOs), a 17% increase on the previous year. The US alone recorded 50 IPOs in the second quarter, while India brought in $6.7bn in fresh capital, up 25% year on year. These numbers reflect a broader resurgence in public capital formation, driven by growing investor appetite and, in some markets, improved listing environments. In comparison, SA’s slowdown stands out, not as an anomaly but as a cautionary tale.
To understand what’s holding companies back from listing locally we need to consider a confluence of factors. The cost and complexity of listing remain a key deterrent, particularly for small and mid-sized firms. Lengthy processes, stringent compliance obligations and high legal and advisory fees make the public route less appealing, especially when private capital is increasingly abundant.
SA equities also trade at a persistent discount to global peers. Structural issues such as currency volatility, political risk perceptions and inconsistent policy signals have made it difficult for companies to realise fair value through domestic listings. It’s no surprise that many of our largest corporates seek dual listings or prioritise international exchanges, where pricing and analyst coverage are more favourable. The trend is reinforced by the growing offshore allowances for pension funds — now up to 45% — which further shifts demand away from the JSE.
The consequences are visible. In 2024 and 2023 the JSE saw net delistings of 12 companies each year, and the year before 13 companies left the exchange. As the listed universe contracts, domestic investors, including pension funds, face a shrinking set of options. That in turn makes it harder for asset managers to fulfil their fiduciary responsibilities and deliver real returns to SA savers.
This tension is particularly acute in light of recent pension reforms. From September 2024, the new “two-pot” system will allow partial early access to retirement savings, a welcome move for many households. But greater flexibility requires greater performance. Without a vibrant, growing local equity market the long-term growth engine of the pension system risks stalling.
Other markets have faced similar headwinds and have responded with practical reforms. For example, the UK’s AIM and Canada’s TSX Venture Exchange offer more flexible listing regimes tailored to smaller companies. These platforms have become launch pads for hundreds of high-growth businesses. SA’s own alternative exchanges, the JSE’s AltX as well as the A2X and the Cape Town Stock Exchange, could play a similar role with the right reforms, including simplified disclosures, mentorship programmes and fee relief.
Meanwhile, Australia has introduced tax offsets for companies undertaking IPOs, helping to ease upfront costs. In the US, the rise of special purpose acquisition companies in recent years shows how pooled capital and simplified listing structures can unlock deal flow. While not all models are transferable, the core insight holds: innovation in market structure and policy can make a material difference.
For SA to turn the tide, co-ordinated action is needed. The JSE, regulators and National Treasury should continue to consider revisiting listing requirements, particularly for companies below certain market-cap thresholds. A streamlined fast track for high-growth sectors such as tech and renewables would signal intent. Meanwhile, a public–private marketing effort, led by the JSE and asset managers, could help rebuild confidence by showcasing recent success stories and highlighting the benefits of going public.
Creating thematic momentum through clustered listings — such as groups of firms from the same sector listing simultaneously — may also help to generate investor interest. Co-investment vehicles targeting retirees, universities and high-net-worth individuals could broaden the base of retail and institutional participation.
Liquidity remains a final hurdle. Introducing market-maker obligations for newly listed stocks could help ensure smoother trading and price stability during the critical post-listing period — a practice already commonplace in larger markets.
The decline in listings is not a JSE issue. It is a global systemic challenge that affects the broader economy. It cannot be solved by one institution alone. Reviving SA’s public equity market requires a shared national effort: regulators that enable, an exchange that evolves, and corporates that see listing not as a burden but as a route to growth, capital and credibility.
If we get this right we won’t just be asking “where have all the listings gone?” — we’ll be welcoming them back.
• Silke is associate partner at Hudson Sandler.
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