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The Zambia Development Agency (ZDA) and the Lusaka Securities Exchange (LuSE) have signed a Memorandum of Understanding (MoU) aimed at improving access to long-term capital for micro, small and medium enterprises (MSMEs) and supporting private sector-led economic growth.
The partnership would create opportunities for businesses in key sectors such as agriculture, tourism, mining and manufacturing, as well as infrastructure, energy and information and communication technology (ICT).
Speaking during the signing ceremony on Wednesday in Lusaka, LuSE Chief Executive Officer, Nicholas Kabaso, said the agreement reflected a shared commitment to addressing limited access to capital, which remains a major constraint to the growth of domestic businesses.
Kabaso said Zambia had considerable entrepreneurial talent and natural resources, but that many businesses continued to struggle to access long-term and patient capital.
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“The mandates of both the ZDA and LuSE are highly complementary. ZDA plays a critical role in investment promotion and enterprise development, while LuSE provides a regulated platform to mobilise long-term capital to sustain these businesses,” he said.
He added that listing on LuSE offered companies benefits beyond raising capital, including improved corporate governance, greater credibility and increased visibility in the market.
Kabaso revealed that LuSE currently had four listed companies with market capitalisation of more than US$1 billion each, but said there was a need to increase the number of large companies on the exchange.
“Four is not enough. We need to build a pipeline of many more companies capable of reaching that scale, and that pipeline must begin with today’s growing businesses,” he said.
ZDA Director-General, Albert Halwampa, said the agreement covered the agency’s three broad mandates of investment promotion and facilitation, access to capital and green capital.
Halwampa said the partnership would promote domestic and foreign investment, increase awareness of capital market opportunities and support listings in high-impact sectors.
He said Zambian companies would also be encouraged to consider LuSE as a reliable, transparent and regulated avenue for accessing long-term financing.
Halwampa said ZDA and LuSE would exchange information and use regional and international networks, including SADC and COMESA, to address trade facilitation challenges and expand commerce.
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