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Zambia’s capital markets recorded robust growth in the first quarter of 2026, with total market capitalisation on the Lusaka Securities Exchange (LuSE) rising to K341.87 billion, supported by improved macroeconomic conditions, stronger investor participation, and solid gains across listed equities.
Securities and Exchange Commission (SEC) Director for Enforcement and Legal Services, Diana Sichone, said market capitalisation increased by four percent from K330.47 billion recorded in the fourth quarter of 2025, reflecting renewed investor confidence in the country’s financial markets.
Speaking at a press briefing in Lusaka at their offices on Wednesday, Sichone attributed the positive performance to favourable macroeconomic developments, including easing inflation, the appreciation of the Kwacha, and a more accommodative monetary policy environment.
She noted that excluding Shoprite Holdings, market capitalisation grew at a faster pace of 8.12 percent, rising to K151.8 billion from K140.3 billion in the previous quarter.
Sichone said the growth was largely driven by strong performances across key sectors such as banking, agriculture, telecommunications, and manufacturing, which significantly boosted valuations on the exchange.
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A key highlight during the quarter was Zambia Sugar’s achievement of a US$1 billion market capitalisation in January 2026, joining Copperbelt Energy Corporation and ZCCM Investments Holdings as part of Zambia’s billion-dollar listed companies.
Several listed counters recorded significant share price gains, with ZANACO leading at 62.88 percent, followed by ZAFFICO at 40.06 percent, Bata Zambia at 28.48 percent, and Airtel Zambia at 27.06 percent.
Sichone said the increase in market value translated into higher investor wealth, as shareholders benefited from capital gains driven by rising equity prices.
However, she noted that some counters, including Standard Chartered Bank Zambia and Puma Energy Zambia, recorded declines in share value, which slightly moderated overall market gains.
Investor participation also rose by 11.03 percent to 92,294 investors during the quarter, further strengthening liquidity and demand for listed securities.
Looking ahead, the SEC expressed optimism that continued macroeconomic stability and ongoing capital market reforms would sustain growth momentum and deepen Zambia’s financial markets in the coming quarters.
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