This presentation talks about the financial and banking system of south Africa and how this country emerged as separate country after having faced several wars lastly, it also tells how the stock exchange of this country operates.

1. South Africa

2. An overview
Official name Republic of south Africa
Income category Upper middle income
Government Republic form of government
Currency South African rand( ZAR)
Capital Pretoria(executive), Bloemfontein(judicial), cape
town(legislative)
languages 11 official languages

3. GNI per capita (us dollars) $5480
Ease of doing business rank 82 out of 190 countries
Population
Exchange rate
Brics member
G- 20 Only African member of the group

4. Timeline of history

5. GROSS DOMESTIC PRODUCT
Sector wise GDP composition:
1.Agriculture-2.44%
2.Services-68.61%
3.Industry-28.95%
4.Manufacturing-13.37%

6. GDP (cont.…)

7. Unemployment rate

8. Inflation

9. TRADING PARTNERS (EXPORTS)

10. trading partners (IMPORTS)

11. TRADING COMMODITIES
IMPORTS AMOUNT
(R/bn)
Mineral Products R4.98bn
Machinery R2.8bn
Chemicals R2.2bn
Prepared Foodstuffs R1.9bn
Vehicles Aircraft & Vessels R1.7bn
EXPORTS AMOUNT
(R/bn/mn)
Mineral Products R6.6bn
Chemicals R723.2mn
Textiles R689.6mn
Prepared Foodstuffs R534.3mn
Precious Metal R451.3mn

12. SOUTH AFRICA :INDICES
EXPORTS
INDICES RANK/SCORE
Corruption Perceptions index 45
Ease of doing Business Rank 82
Financial Secrecy Index 216.43
Global Competitiveness Index 4.3
Global Manufacturing competitiveness Index 48.1
Paying Taxes Indicator 46
Open Budget Index 86
IMPORTS

13. Stock exchange
Formed in 1887.
Jse ltd Is the oldest existing
and largest stock exchange in Africa.
Ranked 19 largest stock exchange in world by market capitalization.
Financial service board supervises the jse.
Activities are licensed and regulated by 2 acts
Stock exchange control act and financial market control act.

14. • Index series – FTSE/JSE all share index
• FTSE/JSE TOP 40
• Five financial markets
• Equities
• Bonds
• Financial
• Commodity
• Interest rate derivatives.

15. Stock market (cont.)
ZAR –X
Established on 1 September 2016
T+ 0 real time settlement.
Does not trade in derivatives
No short selling is allowed.
Custody of securities is at a central securities depository.
Central securities depository participant facilitates clearing.

16. Exchange rate system
Changed considerably since the early 1980s from a highly administrative to a more freely
floating exchange rate regime.
Until 1979 it had fixed exchange rate system.
1979- 1983 implementation of dual exchange rate system.
( a situation in which there is a fixed official exchange rate and an illegal market determined
parallel exchange rate.)
Dual exchange rate system abolished in 1983.

17. Exchange rate (contd..)
Reintroduced in 1985 (dual exchange rate system).
After 1995 reunification of commercial and financial rand.
Now has a unitary exchange rate system.

18. Currency
On Feb. 14 1961 south African
pound was replaced by the south African rand.
South Africa's membership of the British commonwealth and of the sterling area was
terminated.

19. Effect of us financial crisis

20. Crisis ( cont..)
Global slowdown reduced demand for south African exports.
Leads to lower commodity prices.
Current account deficit widened.
Reduced capital flows.
Affected sectors-

21. Sharpeville incident march 1960
first and most violent demonstrations against apartheid.
For abolition of south Africa’s pass laws.
Reports of incident drew international criticism.
Lead to an economic slump.
Large scale capital outflow.
In June 1961 stringent exchange controls were introduced.

22. Rand rigging
Local and international banks have been accused of rigging .
Banks colluded, used online chat rooms to coordinate.
The scam came into light by investigation done by competition commission.
Reuters currency trading platform used for rigging.

23. • Standard bank of south Africa Ltd.
• ABSA bank limited(ABSA).
• Investec Ltd.
• Bank of America.
• Merrill lynch international Ltd.
• BNP Paribas.
• JP Morgan chase& co.
• JP Morgan chase bank NA.
• HSBC bank plc.
• Standard chartered bank.

24. FINANCIAL SECTOR PROFILE
well developing financial sector.
30 banks with almost 4,000 branches, two mutual banks, and a
number of foreign bank branches and offices.
non-banking financial institutions : stateowned development
finance institutions (DFIs), smaller financial intermediaries
Johannesburg Stock Exchange-17th largest in the world by
Market Capitalization.
Major composition of Banking and Insurance System

25. Banking sector
Central Bank – South African Reserve Bank
Established – 1921,currency and banking act,1920.
SARB holds first 6th place.
Big “five banks” banks- Standard bank,Absa
Ned bank, First Rank Bank, capitech (85% of
accounting services).

26. Financial legislations
The national payment systems act.
The Financial Intelligence Centre act.
The Financial Intermediary and Advisory Services Act.
The national Credit Act.
The consumer protection act.
The home loan and mortgage disclosure act.
The competition act.

27. FINANCIAL REGULATORY SYSTEM
 regulatory authorities:
1) South African Reserve Bank (SARB)
2) Financial Services Board (FSB)
3) National Credit Regulator (NCR)
4) Financial Intelligence Center(FIC)
5) South African Revenue Service (SARS)
SARB
Banking
FSB NCR
Stock Exchange
Insurance
Pensions
Consumer
Credit

28. Bop (balance)

29. BOP (net capital ACCOUNT)

30. BOP (current account, us$)

31. Membership- 24 December, 2010
Headquartered –Shanghai, china
Membership Reasons:-
a) Opened Gateway For Investments.
b) Easy access to finance for business.
c) Advanced Banking System.
d) Natural Resources.
e) Stable macro and micro financial climate.

32. SOURCES LINKS
1) https://www.southafricanmi.com/blog-
9mar2017.html
2) https://atlas.media.mit.edu/en/profile/country/zaf/#E
xports
3) https://www.export.gov/article?id=South-Africa-
banking-systems
4) https://www.resbank.co.za/
5) https://www.brandsouthafrica.com/governance/sout
h-africas-financial-sector
6) https://globaledge.msu.edu/countries/south-
africa/indices
7) s://qz.com/662054/south-africa-may-get-three-more-
stock-exchanges-and-a-lot-more-investors/

33. Cont.…
https://www.worldatlas.com/articles/which-countries-have-two-or-
more-capital-cities.html
https://www.wesizwe.co.za/reaping-the-benefits-of-brics-
membership-for-sa.php
https://www.fairobserver.com/region/africa/why-south-africa-brics/
h7Z1WtTIGYjTvwSZ2ZbgCg&q=financial+regulatory+bodies+in+south
+africa&oq=financiaRegulatory+bodies+in+southafrica
https://www.indexmundi.com/facts/south-africa/current-account-
balance

34. MADE BY: PURNIMA MEENA ,M.COM DEPARTMENT OF
COMMERCE,DSE.