LUSe CEO Message to the Market

As we approach the end of the year, Zambia’s capital markets stand on firmer footing, underpinned by renewed macroeconomic stability, improving market infrastructure, and sustained investor participation. These developments have reinforced the Lusaka Securities Exchange’s (LuSE) role as a credible platform for long-term capital formation.

Market Performance Highlights

Total market capitalisation surpassed K328 billion, representing 52% year-to-date growth, while the LuSE All-Share Index gained over 65%, reflecting strong capital appreciation and rising confidence in fundamentally sound Zambian assets.

Market liquidity improved materially, with higher turnover recorded across a broad range of counters, signalling widening participation and improving market depth.

Notably, Copperbelt Energy Corporation Plc and ZCCM-IH each surpassed US$1 billion in market capitalisation, demonstrating the scale that can be achieved through sound governance, strategic execution, and patient capital. Their success strengthens the investment case for high-quality Zambian corporates.

These outcomes were supported by a more favourable macroeconomic backdrop, characterised by moderating inflation, easing fixed-income yields, disciplined fiscal management, and a more predictable monetary policy environment. Recent sovereign credit rating upgrades further enhanced investor sentiment, improving Zambia’s risk profile and supporting capital inflows and asset valuations heading into 2026.

Market Development Progress

From a market development perspective, tangible progress was achieved. Extended trading hours, growing retail participation via mobile platforms (over 18% annual growth), and targeted financial literacy initiatives broadened access and strengthened the market ecosystem.

Primary market activity also gained momentum. The successful listing of Dot Com Zambia demonstrated strong retail and institutional appetite for growth-oriented issuers. Looking ahead, the Exchange anticipates closing remaining IPOs in the pipeline and the issuance of Zambia’s first sustainability bond by ZANACO in the first half of 2026.

I extend my sincere appreciation to all listed companies, investors, brokers, and market intermediaries, both local and international, whose confidence and engagement have driven this year’s progress.

Challenges and Opportunities

Despite these gains, challenges remain, including liquidity concentration, limited product diversity, and a slower pace of new listings, particularly among SMEs. Addressing these constraints through targeted reforms, technology-enabled solutions, settlement cycle enhancements, and close stakeholder collaboration remains a strategic priority.

Simplifying listing rules will remain a key focus in the year ahead. We will continue to support investors through enhanced information dissemination, while actively handholding companies seeking to raise capital through the market. In addition, we also strongly believe that enabling greater participation of public pension funds through selected private fund managers could contribute meaningfully to improved equity market liquidity.

Lastly, targeted fiscal measures, such as tax waivers or relief for companies that raise capital through public listings, can play a catalytic role in lowering entry barriers, enhancing the attractiveness of listing, and channelling greater savings into Zambia’s productive economic sectors. The Exchange will continue to engage Government on the implementation of a well-structured incentive framework to stimulate issuer appetite and accelerate market growth and depth.

Outlook

Looking ahead, 2026 holds even greater promise. Supported by macroeconomic stability, stronger sovereign credit ratings, ongoing digitisation, and a growing pipeline across both the Main and Alternative Markets, we expect deeper liquidity, broader product offerings, and increased investor participation.

While the journey ahead will require continued discipline and collaboration, we remain committed to positioning the LuSE as a credible, efficient, and competitive investment destination.

On behalf of the Exchange, I wish you all happy holidays and a prosperous 2026.

Nicholas Kabaso
Chief Executive Officer
Tel: +260 211 228391
Email: info@luse.co.zm