Business

Foreign investors are betting big on South Africa

Luke Fraser

 ·4 Mar 2026

Foreign investors are increasingly moving into South African assets, with the JSE beating several other markets worldwide.

Speaking to BusinessTech following the release of the JSE’s 2025 financial results, CEO Leila Fourie said the bond and equity markets remain strong.

She noted that South African indices have outperformed global indices. The JSE All-Share was up 57% in 2025, compared to the MSCI Emerging Markets Index, which was up 30.58%.

While much of the JSE’s strong performance has been linked to a rally in miners and commodities, Fourie said it is due to a combination of cyclical and structural drivers.

While much of the equity market’s gains following the 2024 national election came from local investors, Fourie said that there has been a rise in foreign investment in equities.

Non-resident equity ownership on the JSE increased from 29.3% at the start of 2025 to 32.9% at the end.

Crucially, Fourie noted that South Africa’s weighting in the FTSE EM Index grew from 3.16% to 4.29% in 2025.

She said that crossing the 5% mark would lead to a massive influx of foreign capital, as passive foreign investors who just follow the market will increasingly invest in South Africa.

Fixed income also remains increasingly attractive for foreign investors, with net foreign inflows into South African bonds standing at R122 billion (2024: R82 billion).

IPOs on the way

Fourie said that the company is cautiously optimistic about its future prospects, with a host of new IPOs expected in the near future.

This includes Coca-Cola Helenic, which is one of the world’s largest bottling companies. Coca-Cola HBC AG acquired a majority stake in Coca-Cola Beverages Africa for around R45 billion last year.

After Multichoice’s delisting following its takeover by Canal+, the French broadcaster is also planning a secondary listing on the JSE.

Fidelity Services Group, the largest security company in South Africa, is also planning to list on the JSE in the coming year.

The JSE could also see Virgin Active listed in the near future, as its parent company, Brait, unbundles its assets.

In the longer term, Fourie also noted that African Bank and the Tyme Group want to open a new bank in the coming year.

The JSE is also planning a roadshow in the near future as per its partnership with Saudi Arabia’s Tadawul Group.

In 2024, the JSE and Tadawul signed an MOU of dual listings, fintech collaboration, and market development.

A record year

Fourie’s interview with BusinessTech followed the group’s announcement of a record-breaking year, with its profit after tax breaking the R1 billion mark for the first time.

The group’s Headline Earnings Per Share (HEPS) grew to 1,329 cents per share, up 17.7% year-on-year.

With the group’s cash balance increasing by 12.7% to R3.2 billion, the group declared an ordinary dividend of 961 cents per share and a special dividend of 100 cents per share.

This resulted in a total dividend payout ratio of 85.6% (2024: 78%) and a 28.1% year-on-year increase in total dividends.