One of the reasons we enjoy compiling the ZA Group Chat blog posts is that it gives us the chance, as a team, to think a bit laterally. These conversations often start as throwaway ideas and end up uncovering something far more interesting.
This was one of those moments.
It began with a laugh but quickly evolved into a proper debate. The question we landed on was this:
“What if parents could list their children on a stock market?”
Hear us out.
The Origin of the “Children on a Stock Market” Discussion
This idea actually came out of a lunch I had with the CEO of one of South Africa’s more entrepreneurial banking groups.
We were discussing bursaries and the level of investment banks are making in young talent, particularly the increasingly aggressive competition for high-performing graduates entering the financial sector.
The CEO explained how the strategy had evolved over time.
Initially, banks focused on funding students already at university. Then the competition intensified, and they moved earlier, backing learners in Matric. That shifted again to Grade 10. Eventually, they found themselves identifying and funding potential as early as Grade 8.
In other words, institutions are already making long-term bets on individuals before their careers have even started.
That is not entirely different from how many parents think about investing in their own children.
How Would a “Children’s Stock Market” Actually Work?
Education is one of the biggest investments most parents will ever make.
Depending on several variables, raising and educating a child through to a three-year degree can cost anywhere between R2.8 million and R4 million. That includes:
- School fees
- Books and stationery
- Extra lessons
- Sport and cultural activities
- Tours and travel
- University costs
It is a substantial financial commitment, yet most parents make it willingly.
The return is not purely financial, of course. It is about giving your child the best possible opportunity in life. Still, there is often an implicit hope that this investment translates into future success and, indirectly, some form of long-term financial stability.
If you told a financial planner you planned to invest R3 million into an asset class with no guaranteed return, they would probably suggest a different strategy.
So here is the thought experiment:
- Create a platform where parents can “list” their children
- Segment the exchange into sectors such as sport, entrepreneurship or STEM
- Allow parents to issue shares based on how much capital they want to raise
- Introduce quarterly reporting linked to school results, achievements or performance metrics
- Allow valuations to move based on progress and future potential
As children mature and begin earning income, they could theoretically pay a small percentage back to investors.
Back the next Dewald Brevis or Kagiso Rabada early enough, and the returns could begin before they even finish school.
Alternatively, individuals could buy back their shares later in life, delist themselves and retain future earnings.
It sounds ridiculous.
But perhaps not entirely impossible.
What Problem Could a “Children’s Stock Market” Solve?
At face value, the idea feels outrageous. However, it does raise several interesting questions about education funding and opportunity in South Africa.
The Cost of Education and Retirement
Only around 6% of South Africans can reportedly afford to retire comfortably.
There are many reasons for this, but education costs certainly contribute. When a significant portion of household savings is redirected toward school and university fees, it inevitably affects long-term wealth creation and retirement outcomes.
This raises an uncomfortable question:
Are parents effectively over-concentrating their financial risk into a single “investment” without diversification?
The Experience Trap Facing Young South Africans
The idea also touches on another major challenge: the experience trap.
Young people often struggle to enter the workforce because they lack experience. Yet they cannot gain experience unless someone gives them an opportunity first.
In theory, a system like this could place young talent directly in front of investors, mentors or employers with a vested interest in helping them succeed.
That concept is already visible in sectors like sport and entrepreneurship, where talent identification happens earlier and earlier.
Is South Africa’s Funding Model Broken?
The conversation also forces us to examine whether parts of the current education funding ecosystem are functioning effectively.
The National Student Financial Aid Scheme (NSFAS) spends tens of billions of Rand annually, yet repayment rates remain low and graduate outcomes are uneven.
At the same time, SETAs collectively manage billions in skills development funding each year.
The obvious question becomes:
Could some of this capital be allocated more strategically?
If private capital, bursary funding and skills development budgets were pooled more intentionally around high-potential talent, would outcomes improve?
There is no easy answer — but it is an interesting thought experiment.
What Would Investors Actually Gain?
This is where the concept becomes harder to define.
Unlike traditional investments, the return profile is deeply uncertain and highly emotional.
Still, the broader idea raises interesting possibilities around how public and private funding could intersect more effectively.
For example:
- Could companies sponsor future talent pipelines more directly?
- Could investors back entrepreneurial or technical talent earlier?
- Could developmental capital become more outcomes-driven?
- Could Human Capital become viewed as a measurable long-term asset class?
These are not entirely theoretical questions.
Across sectors including banking, sport and technology, organisations are already competing aggressively for future talent.
The only difference is that most of these “investments” currently happen behind closed doors.
Should We List Our Children on the JSE?
So, should we literally list children on something like the Johannesburg Stock Exchange (JSE)?
Probably not.
At least not literally.
But the exercise does force us to think differently about:
- Education funding
- Talent identification
- Skills development
- Access to opportunity
- Long-term Human Capital investment
And perhaps that is the real value of the conversation.
Sometimes the most useful thought experiments are the ones that sound absurd at first glance.
Because if nothing else, they challenge the status quo.
…and that is exactly the point.
We would love to hear your thoughts.
Why These Conversations Matter
At Decusatio, one of the recurring themes across our Human Capital, Investor Communications and Impact Investment conversations is the challenge of connecting funding, opportunity and long-term economic participation more effectively.
Whether the discussion involves youth employment, bursaries, skills development or enterprise growth, the underlying question remains the same:
How do we create systems that produce stronger long-term outcomes?
Through Decusatio Human Capital Solutions and Decusatio Impact Investment Solutions, we work with organisations exploring workforce development, skills pipelines, enterprise development and broader strategic initiatives linked to sustainable economic participation.
If your organisation is navigating challenges around talent development, funding, impact investment or workforce strategy, click here to connect with the Decusatio team.
We would genuinely love to hear your thoughts on the broader debate, comment them down below.