JSE CEO: Geopolitics threaten Artificial Intelligence development

The World Economic Forum in Davos was abuzz with discussions on three key themes - climate change, the technology renaissance, and global geopolitical security. Leila Fourie, CEO of the Johannesburg Stock Exchange (JSE), shed light on how these themes are intertwined and impacting the development of Artificial Intelligence (AI) in Africa. The threat of geopolitics fragmenting and hindering the progress of both climate change and AI technologies was a prominent topic of debate. Countries are leveraging AI and chip technology as a geopolitical tool, leading to concerns about power play and security. These themes are crucial for South Africa and the entire African continent, given their rich natural resources and strategic position in the evolving global landscape. The push and pull for chip dominance between Taiwan, China, and the US add to the complexities faced by Africa. In a bid to attract capital to the continent, it is imperative to ensure regulatory and political certainty, secure energy and logistics plans, and manage fiscal deficits effectively. Despite challenges, there are emerging opportunities as emerging market investors show interest in Africa's potential. South Africa, in particular, is striving to project itself as an attractive investment destination. The JSE has embarked on various initiatives to showcase South Africa through roadshows in China, Hong Kong, and New York. The launch of a voluntary carbon market and a private market for debt and equity investments further demonstrates efforts to attract capital. However, amidst geopolitical tensions and economic uncertainties, the task of retaining and attracting capital becomes arduous. Global geopolitical situations, such as the conflicts between Taiwan and China, Russia and Ukraine, and instability in the Middle East, have a ripple effect on financial flows. Political rhetoric from the South African government adds to the challenges, necessitating a concerted effort to foster stability, democracy, and investor confidence. Leila Fourie emphasized the need to maintain an open and inviting environment for international investors to bolster market liquidity and volumes. Despite a decline in deal listings on the JSE, efforts are being made to enhance market capitalization and attract new companies for capital raising. The introduction of a private market and revised listings requirements are steps in the right direction. Collaboration with the public and private sectors aims to stimulate capital inflows and revitalize the economy. Looking ahead to 2024, the JSE is optimistic about leveraging its growth potential and fostering a conducive environment for investment.