Capital Markets

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: