The LuSE: Redefining Zambia’s Securities Markets
As Zambia’s free market economy dawned, what began in 1993 as a capital markets project by the Government of the Republic of Zambia, the International Finance Corporation (IFC) and the United Nations Development Program (UNDP) has now blossomed into Zambia’s premier Securities Exchange. The Lusaka Securities Exchange (LuSE) PLC has proven resilient through varying economic times such as during the global pandemic and most recently difficult environmental challenges in the form of national drought. The Exchange has not only remained resilient but thrived across all these dynamic periods. Given its strength, the LuSE remains Zambia’s main securities exchange and has been at the heart of Zambia’s economic development, anchoring the country’s medium to long term development objectives.
In 2024, the LuSE was among the best five performing exchanges in Africa having delivered consistent gains for investors across the year. Its total cumulative gains as measured by its All Share Index closed at a cumulative gain of 43% in local currency and 39% in US Dollar terms, placing the exchange in the top 5 best performing markets in Africa. The consistent growth in market returns remains a true reflection of the growth momentum that the market continues to enjoy in a very competitive market landscape in Africa. Additionally, the performance of the exchange posits a very stable and positive macroeconomic performance of the country.
Zambia remains an ideal investment destination in Africa and top ranked among countries with ease of doing business. With its rich untapped natural resources Zambia ranks very competitively within the sub-Saharan region.
It has implemented several reforms and is among the best investor friendly countries with fiscal policy measures that act as an enabler for investors seeking opportunities in its capital markets. Over the medium term, the country is poised to grow over 5% in Gross Domestic Product (GDP). This growth is anchored on a robust private sector supported by favourable fiscal regime. This positions the Capital Markets for favourable growth in the medium to long term with growth opportunities in key economic sectors such as ICT, Telecommunications, Financial, Agriculture, Energy and Construction sectors.
The LuSE: Redefining Zambia’s Securities Markets
As Zambia’s free market economy dawned, what began in 1993 as a capital markets project by the Government of the Republic of Zambia, the International Finance Corporation (IFC) and the United Nations Development Program (UNDP) has now blossomed into Zambia’s premier Securities Exchange. The Lusaka Securities Exchange (LuSE) PLC has proven resilient through varying economic times such as during the global pandemic and most recently difficult environmental challenges in the form of national drought. The Exchange has not only remained resilient but thrived across all these dynamic periods. Given its strength, the LuSE remains Zambia’s main securities exchange and has been at the heart of Zambia’s economic development, anchoring the country’s medium to long term development objectives.
The LuSE remains optimistic over the current economic growth trajectory premised on positive economic, legal and regulatory policy environment. The Board of the LuSE have set out a clear strategic plan that seek to redefine the way business is conducted on the Exchange as the market navigates the current dynamic economic times and reposition Zambia’s financial sector.
Commenting on the strategic imperatives for the Exchange, Mr. Kabaso stated that the Board of Directors have given the Management team a challenge to reposition and enhance the way business is done on the Exchange.
“Among some of the crucial deliverables that the Board seeks to achieve is answering the basic requirements of why we exist! The Board is very clear that, if we must reposition the business, we need to get the basics rights! And that is, within the broader capital markets, the LuSE must facilitate capital formation, enable liquidity flows, and efficient resource allocation thereby anchoring Zambia’s economic development. We believe this is the reason we exist and hence we seek to aggressively reposition the way business is done at the exchange.”
The LuSE’s five-year strategic plan was therefore carefully curated to reflect the journey over the medium to long term. The strategic plan is themed “Sustainable Business Growth – Anchoring Capital Market and Economic Development.”
The theme was carefully chosen to reflect the LuSE’s commitment to meeting shareholder interests by creating an Exchange that experiences sustainable growth, meets the minimum requirements to attract liquidity, capital formation and remains relevant to the modern demands of a global exchange.
The strategy is driven by a vibrant and experienced management team to ensure that LuSE continues to adapt to current and future market trends and repositions itself as a force to reckon with in the regional context.
Some of the key milestones recorded in the last 12 months have been increased innovation and diversification of its product offering. The Exchange has introduced over the period two new instruments:
- Issuance of the first US Dollar denominated Real Estate Investment Trust (REIT) listed on the market
- Issuance of the first Green Bonds listed on the market, culminating into a cumulative value of USD 200mn
In an effort to drive increased individual participation the Exchange has rolled out a Mobile Application which is accessible via the cellular phones. This initiative aims to bridge the gap of financial inclusion and increase retail participation in the stock market.
“We continue to see clear water in volumes year on year via the transactions on our mobile application. This trend could be attributed to dominance of mobile payments in the Zambia’s payment landscape which continue to account for a significant portion of total retail payment value.”
Mr Kabaso stated.
He further stated that, by leveraging such digital platforms, the Exchange is poised to contribute to the national agenda of using a broad range of high quality and innovative financial products and services to serve the underserved communities in Zambia and lead these to the mainstream financial system.
And in line with Zambia’s Capital Markets Master Plan (CMMP), the LuSE has aligned itself for increased market activity and the following activities have since been lined up for execution over the short to medium term:
- Trading Hours: Trading hours on the exchange have been extended from 4 to 5 hours effective 2025. This is to allow for increased liquidity and participation from the investing public.
- Direct Market Access: The LuSE is expected to launch direct market access for its trading floor to allow investor to have increased visibility of the depth of the market in real time. This is anticipated will allow for quick capital formation and price discovery that would inform increased market liquidity.
- Simplifying the Listing Rules: The Exchange has also embarked on the revision of the listing rules to simplify and condense the current rule book for increased business activities both from issuers and investors.
- Active Stakeholder Engagement: Currently, stakeholder engagements are being held annually to maintain open engagement with all our listed companies.
- Listed Companies’ Awareness Program: The LuSE has created listing awareness training programs for Boards of Directors and senior management teams of the listed companies in order to drive continued compliance of the listing rules.
- IPO Pipeline: In partnership with other key stakeholders, the LuSE is tracking an active pipeline of IPOs with increased possibility of near-term actualisation. Currently, 3 different IPOs are in the pipeline for the short term.
The LuSE is very confident that it will remain a luminary in the securities exchange market in Africa and remains an important pillar for Zambia’s economic solution over the medium to long term as it continues to mobilise patient capital into productive economic sectors.
The Pan African Finance Awards awarded LuSE the “Securities Exchange of the Year & Most Innovative Multi-Asset Trading Platform - Zambia 2025”. This was after carefully consider factors such as impact, community engagement, sustainability, global integration and innovation shown by the nominees. Publicly available intelligence was gathered along with any verified supporting evidence provided by nominees.
In accepting the award, the LuSE Chief Executive Officer, Mr Nicholas Kabaso, expressed profound gratitude to the Pan Africa Finance Awards for recognising the immense work the team continues to put in place to redirect the narrative of the exchange. He believes this award is not just a piece of recognition for the LuSE but for Zambia as well! He further stated that its a strong affirmation of the exchanges unwavering commitment to progress, to embracing technological advancements, and to creating a capital market that is efficient, accessible, and truly serves the needs of issuers and investors. He also thanked the Board and Staff for their relentless support and hard work.
Mr. Nicholas Kabaso
CEO, Lusaka Securities Exchange