A company owned by the daughter of one of Soweto's most successful entrepreneurs has been awarded the licence to operate a stock exchange for businesses in Gauteng townships.
Businesswoman Chichi Maponya, the daughter of Richard Maponya, said: "The stock exchange is geared for the retail market, which means it's for the ordinary consumers, because there are currently barriers to entry [in existing stock exchanges] for the ordinary consumers."
Maponya was speaking yesterday at the Gauteng government's dialogue with township entrepreneurs in Tembisa, Ekurhuleni.
The stock exchange, dubbed 4AX, will become operational at the end of February 2017.
"That is by and large who we are targeting to trade but for you to be able to trade there must be some companies that are listed. Therefore we are looking at businesses like the small to medium enterprises," Maponya said.
"At the moment there are trading activities that are happening outside a regulated environment and that has given us a sense and an indication that in a regulated space with a market cap of between R25 to R8-billion entities one is able to trade quite sustainably."
Maponya said before launching, 4AX will embark on investor education roadshows because "the retail market is currently not active in the economy and listing of the current exchange is usually oversubscribed which means there is excess capital that is latent".
"With this exchange we would be able to make that capital accessible to smaller businesses so that they are able to grow and thrive," she said, adding that the company has six shareholders.
Maponya said the stock exchange will be app-based and have a website.
Gauteng premier David Makhura said that the provincial government was encouraging more entrepreneurs who wanted to launch alternative stock exchanges to come forward.
Economic development MEC Lebogang Maile said the provincial government wanted to look at how money raised by stokvels could be used to raise funds for small businesses. He said 4AX would help businesses not to depend on the government.
"Business people must run businesses so that politicians must deal with politics so that we don't unnecessarily babysit them but give them support when necessary."
Stock exchange for kasi
A company owned by the daughter of one of Soweto's most successful entrepreneurs has been awarded the licence to operate a stock exchange for businesses in Gauteng townships.
Businesswoman Chichi Maponya, the daughter of Richard Maponya, said: "The stock exchange is geared for the retail market, which means it's for the ordinary consumers, because there are currently barriers to entry [in existing stock exchanges] for the ordinary consumers."
Maponya was speaking yesterday at the Gauteng government's dialogue with township entrepreneurs in Tembisa, Ekurhuleni.
The stock exchange, dubbed 4AX, will become operational at the end of February 2017.
"That is by and large who we are targeting to trade but for you to be able to trade there must be some companies that are listed. Therefore we are looking at businesses like the small to medium enterprises," Maponya said.
"At the moment there are trading activities that are happening outside a regulated environment and that has given us a sense and an indication that in a regulated space with a market cap of between R25 to R8-billion entities one is able to trade quite sustainably."
Maponya said before launching, 4AX will embark on investor education roadshows because "the retail market is currently not active in the economy and listing of the current exchange is usually oversubscribed which means there is excess capital that is latent".
"With this exchange we would be able to make that capital accessible to smaller businesses so that they are able to grow and thrive," she said, adding that the company has six shareholders.
Maponya said the stock exchange will be app-based and have a website.
Gauteng premier David Makhura said that the provincial government was encouraging more entrepreneurs who wanted to launch alternative stock exchanges to come forward.
Economic development MEC Lebogang Maile said the provincial government wanted to look at how money raised by stokvels could be used to raise funds for small businesses. He said 4AX would help businesses not to depend on the government.
"Business people must run businesses so that politicians must deal with politics so that we don't unnecessarily babysit them but give them support when necessary."
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