Black S.Africans own a chunk of companies on the JSE - CNBC Africa

Black S.Africans own a chunk of companies on the JSE

Special Report

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At least 23 per cent of the Top 100 companies listed on the Johannesburg Stock Exchange (JSE) are owned by black South Africans.

These were the findings of a 2013 study done by Alternative Prosperity, a BEE advisory group.

“The shares held by black investors includes 10 per cent held directly (largely through BEE schemes) and 13 per cent through mandated investment (mostly through individuals contributing to pension funds, unit trusts and life policies),” the report said.

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The report stated that white South Africans hold about 22 per cent of the Top 100 companies.

The largest part of investment funds, of both black and white South Africans, is held through mandated investments.

“Whilst the level of economic interest by black South Africans is linked to our country’s history, the low level of direct participation on the exchange by all South Africans is also linked to generally low financial literacy and related savings,” said Nicky Newton-King, CEO of the JSE.

“South Africans are often tentative about investing directly on the market. The financial services industry is working to improve financial literacy; for example the JSE runs directed capital educational programs in schools and universities and to the general public.”

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Research also showed that foreign investors accounted for about 39 per cent. They also noted that the value of foreign shareholding over the period increased from 34 per cent in 2011 to 39 per cent in 2013.