This trend has not been unique to South Africa. London’s AIM – on which the AltX was modelled – and other international peers have also seen waves of delistings and take-privates, coupled with higher cost of capital and lower valuations. 

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To address this issue, the JSE has, over recent years, introduced reforms aimed at improving competitiveness and increasing investor appetite. Chief among these was the Segmentation Project, which split the Main Board into two tiers: the Prime Segment – catering to larger, more liquid counters under the traditional regime – and the General Segment, which offers a lighter touch, more enabling version of the JSE Listings Requirements, while still safeguarding transparency and disclosure.

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The creation of the General Segment and the dwindling interest in the JSE’s growth board in recent years raises important questions about the AltX’s long-term future within the JSE ecosystem. This article explores seven focus areas through which the JSE could enhance the AltX’s role as a growth platform while supporting the strength and competitiveness of South Africa’s capital markets.

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1. Roadmap the journey: JPP → AltX → General Segment → Prime Segment

For the JSE to truly unlock its growth potential, it needs to clearly map out the journey that companies can take as they evolve on the exchange – starting with JSE Private Placements (JPP), progressing through the AltX and the General Segment, and ultimately graduating to the Prime Segment. By positioning these boards as interconnected stages of growth, rather than isolated platforms, the JSE can demonstrate how it supports issuers at every step of their corporate lifecycle.

The JPP, as a digital marketplace for private equity and debt, should be marketed as the ideal pre-listing ecosystem. It enables companies to raise capital privately, while building the governance, scale and resilience needed for a successful public listing. From there, a stronger, better-prepared pipeline of issuers can naturally transition to the AltX, revitalising the platform with credible growth businesses that attract investors and deepen liquidity.
   
Layering this roadmap with dedicated mentorship, governance training and global investor reach would create a compelling ecosystem that not only elevates the quality of listings, but also boosts market turnover and strengthens South Africa’s capital markets. Over time, as issuers mature, they can seamlessly evolve from the AltX to the General Segment and, ultimately, to the Prime Segment – building a virtuous cycle of innovation, credibility and liquidity that cements the JSE as Africa’s premier listing destination.
 
2. Unlock institutional investment
Ownership of JSE-listed companies is largely concentrated among institutional investors. For AltX-listed firms, this poses a challenge, as pension funds, asset managers and insurers are often restricted by mandates that limit investment in smaller or higher-risk companies, making it harder for AltX firms to attract significant capital. We understand that there are ongoing discussions in this regard, and continued active engagement between the JSE and representatives of South Africa’s largest institutional investors will be essential to explore practical mechanisms for addressing mandate restrictions and facilitating greater institutional investment in AltX-listed companies.

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3. Incentivise, incentivise, incentivise
To encourage AltX participation, listing, trading, clearing and settlement fees for smaller issuers could be reduced or waived – similar to the 50% relief offered during COVID-19 – to lower entry barriers and stimulate liquidity. Simultaneously, investors could be incentivised through tax deductions, credits or capital gains relief, enhancing after-tax returns and making investment in AltX-listed companies – as major contributors to economic growth – more attractive and financially rewarding.

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4. Rename, rebrand and market
A strategic rebrand could transform the AltX’s identity and appeal. Just as Outspan Rusks became the beloved Ouma Rusks and BackRub evolved into the global giant Google, a stronger, more resonant AltX brand can attract new businesses and investors. Coupled with a targeted marketing campaign highlighting success stories, growth potential and investment opportunities, the AltX can position itself as the premier launchpad for South Africa’s growth-stage companies.

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5. AltX-focused indices and exchange traded funds (ETFs)
Creating AltX-focused indices and ETFs could provide demand, improve liquidity, and increase investor participation. These products would also offer institutional and retail investors simplified access to the growth-stage segment of the market.

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6. Educate
The JSE could collaborate with retail investment platforms to raise awareness and educate investors about companies listed on the AltX. Furthermore, through JSE-sponsored analyst coverage, the JSE can help lessen informational gaps among both retail and institutional investors.

7. Rule Review
The JSE should undertake a detailed review of the AltX-related provisions in the JSE Listings Requirements to determine whether such provisions are still fit for purpose. A careful balance will have to be struck between ensuring sufficient protection for investors and not overburdening issuers with unnecessary obligations. 

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Conclusion
By implementing these strategies, the JSE can transform the AltX into a high-impact platform for early growth-stage companies. Its success is critical, not only for investors and listed firms, but for a broad range of stakeholders, and South Africa’s economy at large. A thriving AltX fuels growth, drives innovation, creates jobs, promotes entrepreneurship, attracts foreign capital, and strengthens confidence in the country’s markets – helping to position South Africa as a truly competitive investment destination. 

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Piek is an Executive | PSG Capital