Zambia’s SEC Fines Adviser and Firm for Running Unlicensed Investment Scheme
The Securities and Exchange Commission (SEC) has imposed administrative penalties on Mr George Nshindano Mtonga and Mukwa Fund Limited for providing investment advice, promoting an unauthorised collective investment scheme (CIS), and dealing in securities without the required licences.
According to the SEC, the sanctions were issued on 12 June 2025 under Section 218 (2) of the Securities Act No. 41 of 2016 (as amended). The Commission found that between November 2020 and May 2024, Mr Mtonga used social media platforms to promote himself as an investment adviser in both Zambia and the United States, despite not holding a licence from the SEC.
Investigations revealed that Mr Mtonga, through Mtonga Group Inc, a US-based company he founded, promoted the Mukwa Fund CIS to Zambian nationals, soliciting funds for investment. Neither Mtonga Group Inc nor Mukwa Fund held licences to operate as a fund manager or a CIS.
The SEC concluded that this breached Sections 33(1) and (3) of the Act, as well as Section 122(1), which prohibits the promotion of unauthorised CISs.
The Commission also found that between 10 and 30 May 2024, Mukwa Fund Limited, of which Mr Mtonga is a director, launched a website advertising securities-related services including stock trading, bond investments, wealth management, and commodities trade.
The site also featured client testimonials. However, Mukwa Fund Limited was not licensed to conduct securities business in Zambia, in violation of Section 32 of the Act.
The SEC emphasised that these penalties were necessary to protect investors and uphold the integrity of Zambia’s capital markets.
