Johannesburg Stock Exchange (JSE) has teamed up with fundraising platform Globacap to launch a private placement platform for Africa infrastructure projects.

As part of the partnership, JSE said it will also be backing the London-based capital markets platform’s Series A funding round with a £4m (€4.4m). The agreement will also see the launch of an SME funding market in South Africa.

The companies said the newly created private placement platform will help investors raise capital more easily and efficiently for projects in Africa, a continent which has an infrastructure investment “shortfall of between $53bn and $93bn per year”.

“With approximately 600 million people in Africa still without an electricity connection, and 80% of roads unpaved, infrastructure development is critical for human development and economic output,” the companies said.

Leila Fourie, JSE CEO, said: “The deal with Globacap will support a critical growth node across the continent in the infrastructure and SME sectors.

“The JSE will use Globacap’s innovative technology and expertise to progress infrastructure finance and SME private funding markets. The deal will help stimulate investment into those markets and support job creation and economic growth.”

Myles Milston, CEO of Globacap, said: “We are excited to be part of it, to launch both platforms with the Johannesburg Stock Exchange, and for the JSE’s investment into Globacap, representing a milestone in our progress.

“The deployment of our technology with such an established public market as the JSE moves us one step closer to realising our goal of the digitisation of the world’s private capital markets.”

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