Zambia’s Capital Markets End Year Strong, LuSE CEO Reports
Zambia’s capital markets have ended the year on a strong note, underpinned by macroeconomic stability, improved market infrastructure, and sustained investor participation, according to Nicholas Kabaso, Chief Executive Officer of the Lusaka Securities Exchange (LuSE).
In his end-of-year statement, Kabaso highlighted that total market capitalisation surpassed K328 billion, marking a 52% growth year-to-date, while the LuSE All-Share Index rose over 65%, reflecting strong investor confidence.
“Market liquidity improved materially, with higher turnover recorded across a broad range of counters, demonstrating the scale that can be achieved through sound governance, strategic execution, and patient capital,” Kabaso said. Notably, Copperbelt Energy Corporation Plc and ZCCM-IH each surpassed US$1 billion in capitalisation, strengthening the case for high-quality investments in the market.
The CEO attributed these outcomes to a more favourable macroeconomic environment, characterised by disciplined fiscal management and a predictable monetary policy, supported further by recent sovereign credit rating upgrades that have enhanced investor confidence heading into 2026.
Significant progress was also recorded in improving market accessibility. Extended trading hours, growing retail participation via mobile platforms, and targeted financial literacy initiatives have contributed to a stronger and more inclusive market ecosystem.
Primary market activity gained momentum as both retail and institutional investors showed strong appetite for growth-oriented issuers. The Exchange anticipates closing remaining IPOs in the pipeline, including a sustainability bond by ZANACO, during the first half of 2026.
Despite these gains, Kabaso acknowledged that challenges remain, including market access barriers and the need for more efficient settlement processes. Simplifying listing rules will remain a strategic focus in 2026, alongside actively supporting investors and handholding companies seeking to raise capital.
“Enabling greater participation of smaller investors can boost equity market liquidity. Well-structured listing incentives can lower entry barriers, attract more issuers, and channel greater savings into Zambia’s productive sectors,” he said. Kabaso also confirmed plans to work with the Government on implementing an incentive framework to stimulate issuer appetite and accelerate market growth.
Looking ahead, the LuSE CEO expressed optimism for 2026, expecting deeper liquidity, broader product offerings, and increased investor participation.
“While the journey ahead requires discipline and collaboration, we remain committed to positioning LuSE as a credible, efficient, and competitive investment destination,” Kabaso concluded. On behalf of the Exchange, he extended holiday greetings and wished all investors, brokers, and stakeholders a prosperous 2026.
