11 August 2020 - 17:37On July 5 2019, at the inaugural fourth industrial revolution summit in Midrand, President Cyril Ramaphosa announced plans tounlock economic potential and create a Silicon Valley” in SA. A good thought and strong words, although not actually backed up by parliament or legislation.
Accordingly, world stock markets have not reflected the carnage expected by what is now euphemistically known as the “90% economy post-Covid-19" . In fact, major bourses around the world have made up about 50% of the Covid-19 slump induced during March 2020. As we know, Africa has mainly responded very slowly to the Covid-19 pandemic and, accordingly, its economic fundamentals , remained intact. There are, however, fundamentals worth celebrating and considering during this time.
What is therefore required is a way in which securities can be easily distributed to international investors, where there is sufficient interest due to liquidity, and where markets can operate without the influence of the political elite. Their investment mandate requires that they identify high-growth fintech opportunities, scaled through modern technology in the context of favourable markets. These favourable markets must be open, safe and fundamentally free. The reason SA fintech start-ups are starving for connected capital is a direct function of the local market: we are not open, safe or free.
Safe: Connected capital is all about generating intellectual property and systemising it into methods and platforms. When the property class is under attack due to political cry outs about land expropriation without compensation, connected capital looks elsewhere .