Zambia’s capital market up 10%, investor base tops 1.2 million, says Securities and Exchange Commission

Zambia’s capital market maintained strong momentum in the third quarter of 2025, posting notable gains in equities and sustained growth in Collective Investment Schemes (CIS), authorities have revealed.

Securities and Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu, said the quarter also saw continued strategic progress in green finance, market development, and investor protection.

Chitalu highlighted this in his executive summary for the 2025 Capital Market Brief issued in Lusaka on Thursday.

He said market capitalization rose by 10 percent to K327 billion, raising the Market Capitalisation-to-GDP ratio to 58.6 percent—well above the Capital Markets Master Plan (CMMP) target of 30 percent by 2027.

“Excluding Shoprite Plc (which represents over 60 percent of total market cap), the ratio stood at 24.5 percent, indicating healthier diversification of local capital formation,” Chitalu said.

He noted that the number of investors in equities and CIS combined reached 1.29 million—a 10.9 percent increase from the previous quarter—reflecting Zambia’s ongoing shift toward inclusive financial participation.

Chitalu said the CIS sector grew to K3.5 billion in Assets Under Management (AUM), supported by mobile-based investment platforms and rising retail investor confidence.

“Corporate bond issuance remained moderate, but secondary market activity in government bonds strengthened,” he stated.

He added that the SEC, working with key partners, advanced reforms under the CMMP, tracked progress on key performance indicators, and promoted innovation in sustainable finance.

Investor protection remained a central focus, with the Commission detecting and issuing public alerts against three fraudulent schemes.

“Public awareness campaigns such as the Scams Awareness Campaign and other outreach events reinforced the Commission’s mandate of safeguarding investors and enhancing market transparency,” Chitalu said.

He added that the macroeconomic environment during the quarter showed encouraging signs of stability.

“Inflation continued its downward trend—from 14.1 percent in June to 12.3 percent in September 2025—prompting the Bank of Zambia to maintain its policy rate. The exchange rate remained relatively stable at K23.87 per USD,” Chitalu highlighted.

He noted that the Lusaka Securities Exchange (LuSE) recorded robust growth, driven by counters such as ZCCM (+60%), Airtel Networks Zambia (+45%), and Zambia Sugar (+41%).

The LuSE All Share Index (LASI) rose by 24.87 percent, closing at 25,242.39 points, reflecting strong investor sentiment and resilience in listed equities.

“While overall performance was positive, liquidity constraints persisted, with market trading activity concentrated in a few dominant companies,” he stated.

In addition, the corporate bond market recorded a modest rise, with total outstanding bonds increasing by 1.2 percent to K4.95 billion from K4.89 billion in the previous quarter.

Chitalu said the growth was supported by new issuances worth K51.75 million, which outweighed redemptions of K1.7 million and minor exchange rate movements (K23.8680/USD vs K23.8147 in Q2).

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