JSE wants to turn 10 South African tech SMEs into investor-ready businesses

The Johannesburg Stock Exchange (JSE) has partnered with the Technology Innovation Agency (TIA) to assist 10 South African technology start-ups in becoming investor-ready businesses. The 16-week pilot program provides these SMEs with access to capital-market expertise, investor networks, and commercial opportunities, as the JSE explores its potential role in the early stages of startup funding.

The selected companies hail from the health, agriculture, and fintech sectors and were chosen based on their products/services, maturity, and commercial potential. The SMEs will receive assistance with investment readiness and pitch development, as well as gain access to JSE networks through a market access day and sector-specific engagements.

At program's conclusion, JSE and TIA hope to produce pitch packs, market linkages, and potential capital engagements ready for funding. Some participants may meet AltX screening criteria, the JSE's process for assessing smaller and growing businesses for potential listing on its alternative market. The partnership aims to move these companies closer to engaging investors and accessing formal capital markets.

The initiative aligns with TIA's role as a connector and facilitator for commercializing locally developed innovations. TIA's Executive for Innovation Enabling, Patrick Krappie, highlights the importance of commercializing new technologies to address South Africa's innovation value chain challenges. The JSE and TIA partnership expands the SME Rise program into technology sectors crucial to economic growth.

Deputy Finance Minister Ashor Sarupen notes that SMEs contribute significantly to formal businesses, jobs, and GDP in South Africa. Vuyo Lee, Chief Marketing and Corporate Affairs Officer at the JSE, hopes the initiative equips South African technology SMEs with capabilities and opportunities to compete regionally and globally.