The Public Investment Corp, which invests pension money on behalf of government workers, has acquired a 25% stake in new South African stock exchange ZAR X for an undisclosed sum.

The PIC, which has assets under management of R1.9 trillion, has made the investment on behalf of the Government Employees Pension Fund.

ZAR X is a newly licensed stock exchange that uses technology to remove high barriers to entry and reduce costs.

“ZAR X and the PIC share a common vision of promoting financial inclusion and stimulating developmental investment,” ZAR X CEO Etienne Nel said in a statement.

“This transaction provides us with an opportunity to own a portion of the stock exchange while at the same time affording us an alternative platform from which to trade and on which to list,” said PIC corporate affairs head Deon Botha.

“This will further assist us in our resolve to bring about meaningful change in and transformation of the domestic capital markets and overall financial services industry landscape.”