Leila Fourie and the JSE’s next retail-investor challenge

Leila Fourie leaves the JSE with a stronger exchange than the one she inherited, but one unresolved question still hangs over her exit: how do you build a deeper base of South African retail investors, especially beyond the familiar large-cap names?

Entry into the market has become easier, and a first ETF purchase now looks far less intimidating than it did a few years ago.

Fourie said in late 2025 that South Africa still needs broader backing for small and mid-cap companies, with retail participation still lower in parts of the market where new capital would help most.

Access, on its own, was never going to fix the culture gap. A phone app, fractional buying, and a balanced mix of ETFs and local shares can open the door, but they do not turn cautious earners into long-term equity buyers overnight.

Fourie’s final stretch at the JSE leaves behind a healthier institution, while the next leadership team inherits a harder job outside the exchange itself, namely building trust, routine, and patience among younger South Africans who have heard every money pitch under the sun.

What Fourie leaves behind

A stronger exchange, an unfinished retail story

Reuters confirmed that Fourie will step down at the end of March, with Valdene Reddy set to take over on April 1. During her tenure, the JSE improved earnings, diversified revenue streams, and modernised its infrastructure.

JSE results released in March showed net profit after tax exceeding R1 billion for the first time, marking a milestone for the exchange.

The internal work looks convincing on paper. Systems improved, revenue broadened, performance strengthened. Retail participation sits outside that progress. A stronger exchange does not automatically produce a more engaged investing public.

There is a visible gap between access and action. South Africans have more tools, more platforms, and more educational content than ever before. However, participation is still uneven, especially beyond the largest, most recognisable companies.

Why retail participation still lags

Young South Africans are not ignoring the market out of ignorance. Many face stretched budgets, rising living costs, and competing financial priorities.

Regular investing competes with rent, food, and debt. A long-term portfolio sounds sensible in theory and far less urgent in practice.

Retail-investor growth will not come from another campaign about inclusion or accessibility. It will come when investing becomes a normal financial habit, not a side project reserved for spare cash that rarely exists.

Retail behaviour follows familiarity, and first-time investors gravitate towards ETFs, well-known shares, and products that appear easier to understand.

Smaller companies, with lower liquidity and less coverage, struggle to attract that same attention. Fourie’s call for broader backing of small and mid-cap firms runs into that behavioural wall.

Cape Town offers a useful, if quiet, example of the gap. The city has a strong base of young professionals, founders, and side-income earners who are financially aware and digitally active. Curiosity about investing is visible. Consistent participation in local equities, especially outside major counters, still trails behind that interest.

The small-cap problem does not fix itself

Fourie pointed to the need for more open-minded investment into smaller listed firms. These businesses require capital, liquidity, and a broader shareholder base. Retail investors, especially new ones, are not naturally drawn to that end of the market.

Risk perception plays a role. While smaller companies can offer growth, they also have volatility, limited information, and a higher chance of disappointment. A beginner is unlikely to start there when ETFs and established shares provide a more comfortable entry point.

Expecting new investors to support underfunded parts of the market out of principle misses the point. Capital flows towards clarity, familiarity and manageable risk. Retail investors are not looking to solve structural issues within the exchange.

A gap forms between what the market needs and what individuals are willing to do. Closing that gap requires more than encouragement.

What is next for the JSE?

• Valdene Reddy steps into a JSE that is operationally stronger than it was several years ago. Financial performance has improved. Infrastructure has been modernised. The next phase is less about systems and more about behaviour.
• Education alone will not be enough, and while simpler tools help, they do not build habits. Market participation becomes consistent when it fits into everyday financial life without requiring large commitments or a high tolerance for volatility.
• Retail investing needs to look less like a specialist activity and more like a routine extension of personal finance. Regular, smaller contributions carry more long-term value than occasional bursts of activity driven by hype or short-term trends.

The real challenge ahead

Fourie leaves behind a more resilient exchange. The retail challenge now sits with the next leadership phase. South Africans have seen enough financial issues, from scams to unrealistic trading claims, to approach the market with caution.

Building a broader retail base will depend on restoring trust and reinforcing consistency. Investors need to understand what they own, why they own it, and how it fits into their financial reality.

Cape Town, along with other urban centres, shows that there is interest, but converting that interest into sustained participation is still the harder task.

The JSE has improved its structure. The next step is building a culture where investing becomes routine, not occasional.