By Ebi Kesiena
Global Financial Centers index on Thursday indicated that Johannesburg has suffered a sharp drop in its reputation as a top financial center, falling from position 69 to 83 in ranking.
About 121 cities are ranked according to surveys of 147 factors provided by third parties, including the World Bank, OECD, and the United Nations and the factors include the state of the local business environment, human capital, infrastructure, financial sector development and reputation.
South Africa’s standing as a reputable financial hub took 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 signaled to global banks, financial institutions and investors noted that the country is not fully compliant with anti-money laundering and terrorist financing standards.
The move therefore put South Africa in the company of countries such as Syria, Haiti, Yemen and Mozambique.
Also, the Johannesburg Stock Exchange, JSE suffered an exodus of key listings, including Mediclinic, PSG and Distell. In 2021 alone, it lost 25 listings. This 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. 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.
While 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.
