LuSE seeks reforms, state-owned enterprises listings to deepen Zambia’s capital markets

The Lusaka Securities Exchange (LuSE) has called for policy consistency, a wider range of financial products and the listing of major State-owned enterprises to deepen Zambia’s capital markets and attract more investment.

Chief Executive, Nicholas Kabaso, said in an interview on Wednesday that Zambia’s markets were showing “strong signs of growth,” supported by improving economic indicators and rising investor confidence. He noted that trading activity had been increasing across both equities and fixed-income instruments, driven by what he described as a stable and credible policy environment.

“We are seeing significant opportunity within Zambia. The capital markets are opening up quite actively, with activity spanning from fixed income instruments to equities,” Kabaso said.

He attributed the renewed interest to ongoing fiscal consolidation and progress in the government’s debt restructuring efforts, which he said had improved Zambia’s appeal to both local and foreign investors. Kabaso added that turnover by mid-2024 had already surpassed levels recorded in comparable periods.

However, he warned that sustaining momentum would require consistent and predictable policymaking. “For markets to be more functional and fit for purpose, we need policy consistency and credibility. These are critical pillars in ensuring long-term investor confidence,” he said.

Kabaso said Zambia’s capital markets remained shallow, with a limited range of instruments constraining liquidity and activity.

“The product offering is largely vanilla, and that has constrained activity. To position Zambia as a hub for capital inflows, we must deepen the market and improve liquidity,” he said.

He described the potential listing of major State-owned enterprises as a “low-hanging fruit” that could expand market depth and broaden citizen participation in wealth creation.

Kabaso also called for reforms to broaden access to national pension funds, arguing that increased private sector participation could unlock additional investment for the capital markets.

“As we look ahead, the focus must be on deepening the market, strengthening policy credibility and creating opportunities for wider participation. That is how we make our capital markets truly fit for purpose,” he said.

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