Noah Greenhill is an angry man, and for a good reason – with the Toronto Stock Exchange (TSX) and the London Stock Exchange (LSE) luring many black economic-empowerment (BEE) companies in South Africa's mining industry with lucrative incentives, he feels that his JSE is suffering the classical effects of the "nothing good comes out of Africa" syndrome.
The JSE's senior GM for marketing and business development vented his frustration during a MINEAfrica seminar on BEE in South Africa's mining industry, which was held in London recently.
Greenhill, who made an off-the-cuff presentation on financing BEE companies through the stock market, said he did not understand why South African companies opt to list on the TSX or the LSE without considering at least a dual listing on the JSE.
BEE companies, including a number that were represented at the seminar, have been lured to the TSX's Venture Exchange and the LSE's Alternative Investment Market (Aim) with an assurance of capitalisation from the two markets' vast investor bases and their competitive conditions that ensure a better chance of visibility and stock appreciation.
"It's an excuse," said Greenhill, with a tone of annoyance that was not lost on most seminar attendees, including Canadian Claus Andrup, of Western Wind Energy Corporation, who later remarked: "I feel like you were addressing me."
"There is plenty of capital in South Africa, where we have more than 30 sponsors. [Fund managers] just do not go aggressively to South African financers [as they] do in London or Toronto," said Greenhill.
He pointed out that BEE companies should be aware that when they list on the JSE's Alternative Exchange (AltX), they help ensure that the benefits will remain in South Africa.
Analysts have generally considered the JSE's AltX to be "in its infancy" and rather restrictive to foreign funders, especially because of South Africa's exchange controls.
"We are not saying, 'Give us everything'. If you want to raise money elsewhere, fantastic, but give a little bit to South Africa. We are open for business," said Greenhill.
As if to answer his pleas, two companies represented at the seminar, BSC Resources and GVM Metals, announced plans to list on both the TSX's Venture Market and on AltX soon.
"We will list on the TSX's Venture Market first, in the first quarter, and then on the JSE," said BSC Resources CEO Bongani Mtshisi.
But the lure of Canadian funds is set to be enhanced with the proposed introduction of a 'flow-through share' regime in the South African market.
A flow-through share is a type of common share which allows a principal business corporation, involved in exploration to transfer tax deductions to investors, who can apply them against their personal or corporate income tax.
The benefits of the regime have cross-border appeal to companies with Canadian investors.
Meanwhile, MINEAfrica's two London seminars were oversubscribed, with investors, finance experts, mining executives and market analysts who discussed the merits of investing in the African mining sector which is considered the leader in foreign direct investment for the continent.
The success of the seminars on 'Investing in African Mining' and 'BEE in South Africa's Mining Industry' could result in Toronto-based MINEAfrica turning them into annual events held in Toronto and London.
The JSE's senior GM for marketing and business development vented his frustration during a MINEAfrica seminar on BEE in South Africa's mining industry, which was held in London recently.
Greenhill, who made an off-the-cuff presentation on financing BEE companies through the stock market, said he did not understand why South African companies opt to list on the TSX or the LSE without considering at least a dual listing on the JSE.
BEE companies, including a number that were represented at the seminar, have been lured to the TSX's Venture Exchange and the LSE's Alternative Investment Market (Aim) with an assurance of capitalisation from the two markets' vast investor bases and their competitive conditions that ensure a better chance of visibility and stock appreciation.
"It's an excuse," said Greenhill, with a tone of annoyance that was not lost on most seminar attendees, including Canadian Claus Andrup, of Western Wind Energy Corporation, who later remarked: "I feel like you were addressing me."
"There is plenty of capital in South Africa, where we have more than 30 sponsors. [Fund managers] just do not go aggressively to South African financers [as they] do in London or Toronto," said Greenhill.
He pointed out that BEE companies should be aware that when they list on the JSE's Alternative Exchange (AltX), they help ensure that the benefits will remain in South Africa.
Analysts have generally considered the JSE's AltX to be "in its infancy" and rather restrictive to foreign funders, especially because of South Africa's exchange controls.
"We are not saying, 'Give us everything'. If you want to raise money elsewhere, fantastic, but give a little bit to South Africa. We are open for business," said Greenhill.
As if to answer his pleas, two companies represented at the seminar, BSC Resources and GVM Metals, announced plans to list on both the TSX's Venture Market and on AltX soon.
"We will list on the TSX's Venture Market first, in the first quarter, and then on the JSE," said BSC Resources CEO Bongani Mtshisi.
But the lure of Canadian funds is set to be enhanced with the proposed introduction of a 'flow-through share' regime in the South African market.
A flow-through share is a type of common share which allows a principal business corporation, involved in exploration to transfer tax deductions to investors, who can apply them against their personal or corporate income tax.
The benefits of the regime have cross-border appeal to companies with Canadian investors.
Meanwhile, MINEAfrica's two London seminars were oversubscribed, with investors, finance experts, mining executives and market analysts who discussed the merits of investing in the African mining sector which is considered the leader in foreign direct investment for the continent.
The success of the seminars on 'Investing in African Mining' and 'BEE in South Africa's Mining Industry' could result in Toronto-based MINEAfrica turning them into annual events held in Toronto and London.
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Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
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