Since reliable records began in the 1920s, South African equities have consistently delivered real returns of around 6–7% per year after inflation — one of the strongest long-term records globally.
This isn’t luck. It’s the result of economic growth, corporate profit expansion, dividend reinvestment and the simple mathematics of compounding over decades.
The Long-Term Evidence
Data from the Credit Suisse Global Investment Returns Yearbook and local studies show that R1 invested in the JSE in 1925 would be worth more than R1 million in real terms by 2024 — despite world wars, apartheid, sanctions, and multiple currency crises.
6.5% real annualised
Average return from 1925 to 2024 (after inflation)
99 years
Of continuous market history on the JSE
What Drives These Returns?
Three main factors explain why SA shares have performed so well over time:
Economic Growth
Companies grow earnings as the economy expands
Dividend Reinvestment
Many JSE companies pay consistent dividends
Resource Exposure
Commodity cycles have historically benefited SA-listed miners
Volatility vs Long-Term Growth
Short-Term Reality
- 2008: –40% drop
- Nenegate 2015: –25% in weeks
- Covid March 2020: –35%
Long-Term Outcome
- Every major crash fully recovered
- 20+ year investors never lost in real terms
- Time smooths out the noise
Key Lessons from History
The data repeatedly shows that staying invested through all market conditions has been the biggest determinant of long-term success for South African equity investors.
“Time in the market beats timing the market.”
A phrase proven true on the JSE for nearly a century.