Zambia Capital Markets Executive Summary
The Zambian Stock Exchange, the Lusaka Stock Exchange (LUSE), was established in 1993 and started business on February 21st 1994.
Since then, the LUSE has managed to diversify financial instruments on the market with equities, unit trusts, government and corporate bonds.
To date, there are 24 companies listed at the LUSE, for a total market capitalization of ZMW 62,873 million, as of September 23rd 2014.
The LUSE All Share Index (LASI), which was introduced in 1997 with a base of 100 points, has risen to 6,208.52 points as of September 23rd 2014.
The total amount of corporate bonds issued since the LUSE ‘s inception is over ZMW 1 trillion.
An increase in the amount of government bonds traded in the secondary market has been recorded at almost 200% since 2011.
Zambia Capital Markets Liberalization
Following Zambia’s economic and politic liberalization in the beginning of the 1990s, the Securities Act 1972 was amended in 1993, establishing the SEC to regulate the Zambian securities market.
The Act sought to hold shares from the privatised state companies in trust on behalf of Zambians for divestiture.
The establishment of the Lusaka Stock Exchange was part of the government’s broader economic reforms aimed at stimulating a dynamic private sector to be the primary engine for economic growth in Zambia.
The International Finance Corporation (IFC) and the World Bank (WB) provided the technical support during the establishment of the LUSE, while the Zambian Government provided grant financing until 2009.
After 2009, the LUSE became totally dependent on its listed companies to generate operational revenues.
The sustainability of the LUSE became dependent on increasing the number and size of companies that listed on the Stock Exchange.
As of September 2014, a total of 24 companies are listed at the LUSE.
Zambia Capital Market Players
The Zambian capital market is composed of 24 listed companies, 6 licensed brokers and 2 custodian banks.
List of Listed Companies:
Listed Companies Share Quote Activity African Explosives Zambia PLC ( AEL Zambia) AELZ Explosives in Mining, Construction, Quarrying Airtel Networks Zambia PLC (Airtel Zambia) ATEL Telecoms Zambia Bata Shoe Company PLC BATA Shoes British American Tobacco Zambia PLC BATZ Tobacco Cavmont Capital Holdings Zambia PLC CCHZ Banking Copperbelt Energy Corporation CEC Energy First Quantum Minerals Limited FQMZ Mining Investrust Bank PLC INVESTRUST Banking Lafarge Cement Zambia PLC LAFARGE Construction Madison Financial Services PLC MAFS Insurances/ Financial services National Breweries PLC NATBREW Alcoholic Beverages Pamodzi Hotels PLC PAMODZI Tourism/Hotels/Luxury Prima Reinsurance PLC (PRIMA-RE) PRIMA-RE Insurances Puma Energy Zambia PLC PUMA Energy Real Estate Investments Zambia PLC REIZ Real Estate Real Estate Investments Zambia PLC REIZPREF Real Estate Standard Chartered Bank Zambia PLC SCZ Banking Shoprite Holdings LTD SHOPRITE Retail/Food Zambeef Products Zambia PLC ZAMBEEF Agribusiness Zambian Breweries PLC ZAMBREW Alcoholic beverages Zambia Metal Fabricators Zambia PLC ZAMEFA Metals Zambia National Commercial Bank PLC ZANACO Banking Zambia Consolidated Copper Mines Investment Holdings PLC ZCCM-IH Copper Mining Zambia Sugar Company PLC ZSUG Agribusiness / Sugar processing