• Market Watch

Joburg tumbles in rankings of world's top financial centres

- 2023-10-03 00:00:00

Johannesburg has suffered a sharp drop in its reputation as a top financial centre, falling from position 69 to 83 in the Global Financial Centres index.
Some 121 cities are ranked according to surveys of 147 factors provided by third parties, including the World Bank, the Organisation for Economic Co-operation and Development (OECD) and the United Nations.
The factors include the state of the local business environment, human capital, infrastructure, financial sector development and reputation.

Greylisting
South Africa's standing as a reputable financial hub has taken a big knock after it was greylisted by the Financial Action Task Force, an intergovernmental body that sets global standards to combat money laundering and terrorist financing.
The watchdog's decision signals to global banks, financial institutions and investors that the country is not fully compliant with anti-money laundering and terrorist financing standards.
The move puts South Africa in the company of countries such as Syria, Haiti, Yemen and Mozambique.
The JSE has also suffered an exodus of key listings, including Mediclinic, PSG and Distell. In 2021 alone, it lost 25 listings. Last week, major gold producer AngloGold Ashanti moved its primary listing to the New York Stock Exchange.
According to the Global Financial Centres index, Cape Town's standing dropped from 73 to 91.

Africa
Casablanca (ranked 54th) continues to be the leading African centre, according to the index and Mauritius (68), Kigali (81), and Nairobi (90) all gained 10 or more places in the rankings.
Namibia is not included in the index.
New York remained the world's top financial centre since it dethroned London five years ago. London is second, followed by Singapore and Hong Kong. Washington DC and Geneva replaced Seoul and Bostin in the top 10 rankings.
The index is compiled every six months by London-based think tank Z/Yen and the China Development Institute. – Fin24