Strategic Alliances and Mergers of Financial Exchanges: The Case of the SADC*
The vast region included in the Southern African Development Community (SADC) was in desperate need of external investment at the beginning of the 21st century. During the 1990's, numerous national financial and stock exchanges opened in most member countries of the SADC. Most of these remained small; a decade after its formation, the Swaziland Stock Exchange listed only six stock companies in the year 2000. The Johannesburg Stock Exchange (JSE) far surpasses all others in the region in stock listings and liquidity, although the JSE lost a number of its blue-chip listings to the London Stock Exchange during 1998-2001. Despite fears of South African dominance, the SADC region's exchanges would most likely benefit from merging, in terms of efficiency and their ability to provide services.