Can the AT50 Index convince Africa's biggest startups to list at home?

In the gleaming halls of the Johannesburg Stock Exchange (JSE) on Wednesday, a pivotal shift in the narrative of Africa's tech landscape took place. For years, the ultimate ambition for many of the continent's most successful startups has been to list on the likes of Nasdaq or the London Stock Exchange (LSE). But the vision that took centre stage that day was different: Africa's future tech champions should be built and eventually listed on African exchanges. It's a message that resonated deeply with Gbite Oduneye, Chair of the AT50 Index, who pointed out that the wealthiest people in almost every African country have built listed businesses on their domestic exchanges.

The AT50 Index, a new benchmark designed to make Africa's largest private technology companies more visible to institutional investors, has been making waves since its launch at the London Stock Exchange in January. The rules-based benchmark is a market intelligence platform that measures the continent's leading scaled private technology companies. Its African activation in Johannesburg was the first of many, with the next stop scheduled for the Egyptian Exchange in Cairo on September 23.

Africa has produced a growing number of billion-dollar startups, but its capital markets have yet to keep pace. The gap between the two has been a major talking point at the JSE, where discussions revolved around making Africa's largest private technology companies more visible to institutional investors before they pursue listings or other liquidity events. For Oduneye, changing the mindset of founders is key to bridging this gap. Many founders dream of ringing the bell at Nasdaq or the LSE without fully considering African exchanges, he noted during a fireside discussion. But the AT50 Index aims to change that by providing a consistent way to measure and benchmark these companies, making it easier for institutional investors to understand their growth potential.

The JSE's strategy to strengthen Africa's capital markets is part of a broader effort to attract technology companies that have reached a point where raising another venture capital round is no longer enough. According to Sam Mokorosi, the JSE's Head of Origination and Deals, this is where the conversation naturally begins about listing on a stock exchange. The AT50 Index is a crucial step in this process, providing a benchmark that helps institutional investors better understand fast-growing private technology companies before they become public issuers.

The African activation of the AT50 Index is a significant milestone in the journey towards creating a more robust and competitive tech landscape on the continent. By changing where founders look when they start thinking about life after venture capital, the AT50 Index is paving the way for Africa's tech champions to be built and listed on African exchanges. It's a vision that resonates deeply with Oduneye, who believes that Africa's future tech champions should be built and listed on African exchanges. As the AT50 Index continues to engage exchanges and investors across the continent, one thing is clear: the future of Africa's tech landscape is bright, and it's being written on African soil.

The AT50 Index has its next activation scheduled for the Egyptian Exchange in Cairo on September 23.