Building the Next Generation of South African Tech Companies

The South African technology sector faces a critical challenge: transitioning from early-stage startups to companies capable of generating independent exits. While there’s no shortage of innovative solutions, many tech SMEs struggle when moving beyond venture funding and requiring institutional investment.

The Johannesburg Stock Exchange (JSE) recently partnered with the Technology Innovation Agency (TIA) in a significant initiative aimed at addressing this gap. This isn’t just about getting 10 companies listed; it’s about strengthening South Africa’s ability to commercialize innovation and build scalable businesses that can attract serious capital, expand into new markets, and achieve meaningful exits.

The pilot program selected 10 businesses across health, agriculture, and fintech for specialized support in investment readiness, market access, and governance. The goal is to help these companies develop the financial structures and operational maturity required by institutional investors—predictable revenue streams, sound governance, and credible management teams being paramount.

Beyond Trade Sales: Building Independent Tech Champions

While acquisitions by larger corporations like Nedbank (acquiring iKhokha for $99.5 million in 2025) and Lesaka (acquiring Adumo for $100.7 million in 2024) demonstrate the viability of local innovation, they also highlight a strategic dilemma: South African tech firms are frequently acquired before reaching their full potential as independent public companies.

The JSE’s initiative seeks to cultivate a new generation of tech businesses that can not only generate exits but also become acquirers themselves—creating a more self-sustaining ecosystem where innovation feeds further innovation.

There are encouraging signs. Companies like Syft Analytics (acquired by Xero for $70 million in 2025) and DocFox (bought by nCino for about $75 million in 2024) demonstrate that South Africa can build globally competitive technology businesses that attract international buyers.

The real test will be whether the JSE’s approach can help more companies reach a point where they can generate liquidity through public listings or larger, independent exits—rather than primarily through trade sales to established institutions.