A new memorandum of understanding was on Monday signed between the Johannesburg Stock Exchange (JSE) and the New York Stock Exchange (NYSE).
This aim of the MoU is to foster closer ties between the two markets, and to increase economic partnerships and trade opportunities.
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“It is encouraging that the JSE and NYSE will continue to explore new areas of cooperation and collaboration in strengthening their value propositions for their respective markets,” said Governor of South African Reserve Bank, Lesetja Kganyago.
South Africa shares significant economic interests with the United States (US) and is the US’s largest African trading partner. Kganyago said that SA has the most diversified and industrialised economy on the continent.
Around 600 US businesses operating in SA
“Despite the rapid growth in Asian economies, the US remains one of South Africa’s top five main trading partners. In 2021, US exports to South Africa totalled US$5.5 billion − a 25.8% increase from 2020, while US imports from South Africa totalled US$15.7 billion − a 38.5% increase.
“There are approximately 600 US businesses operating in South Africa and many use South Africa as their regional headquarters, and a springboard for greater opportunity on the African continent,” he said.
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Kganyago explained that these structural features of the economic relationship are stable and will certainly grow in the coming years.
“Nevertheless, the global economic environment is challenging and is likely to remain as such for the next year or so, as we all find our way out of the economic repercussions of the Covid-19 pandemic. Critical to shaping our path will be considered policies that seek to reduce volatility and uncertainty, and which aid the long-term investment that underpins sustainable economic growth,” he said.
