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Zambia’s capital markets are expected to play a bigger role in financing Small and Medium Enterprises (SMEs), with the recently approved Capital Markets Master Plan setting out measures to expand access to funding beyond conventional bank lending.
Securities and Exchange Commission (SEC) Assistant Director for Market Development Projects, Mubanga Kandolo, said the master plan aligned with the Eighth National Development Plan (8NDP), which identifies capital market development as a key driver of economic growth and business financing.
Speaking during a panel discussion on Unlocking SME Growth Through Alternative Financing at the SEC Capital Markets Forum during the 2026 Agricultural and Commercial Show in Lusaka, Kandolo said the commission was committed to creating a regulatory environment that mobilized long-term capital for productive sectors, particularly SMEs.
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“The Master Plan places significant emphasis on SME development and the creation of innovative financial products capable of meeting the financing needs of growing businesses,” he said.
Kandolo said SEC had introduced several regulatory frameworks aimed at broadening financing options, including private equity funds, venture capital funds and a regulatory sandbox that supports innovative financing models such as crowdfunding.
He noted that these instruments offered viable alternatives to commercial bank loans but remained largely underutilised.
Kandolo attributed the low uptake to limited awareness of capital market products among SMEs, saying many businesses are yet to understand the financing opportunities available outside the traditional banking sector.
To address this, he said the commission was stepping up stakeholder engagement and working with industry players to increase awareness and encourage wider participation in capital market financing.
Kandolo said greater utilisation of existing financing instruments would improve access to long-term capital, stimulate investment in SMEs and contribute to Zambia’s broader economic development goals.
He added that stronger collaboration between regulators, investors and the private sector would be key to deepening the capital market and positioning it as a reliable source of financing for emerging businesses.
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