The Securities and Exchange Commission is working […]

The Securities and Exchange Commission is working on waiving fees on the alternative market to encourage more small and medium enterprises to list on the Lusaka Securities Exchange (LuSE). Key factors that are fueling the waiver are that the commission has not been attracting significant listings, despite the presence of viable corporates on the market, with listed companies pegged below 30, with only one small and medium enterprise.

Experts on the market have questioned the status quo. What should be done to enhance participation in the market? The Securities and Exchange Commission Director of Policy and Market Development, Mateyo Lungu, told Zambian Business Times-ZBT that the Commission is working on various interventions aimed at increasing participation on the exchange.

 Speaking in an exclusive interview with Zambian Business Times—ZBT, Lungu noted that the commission currently has two boards for listing, namely the main board and alternative market, whose fees have been waived off.

 “We currently have one company listed on the alternative market, but we have taken huge steps like waiving off the fees in order to encourage small and medium enterprises to list and be able to raise capital on the exchange,” added Lungu.

 He added that on the main board the number of listed companies stands at 23, and the commission is undertaking education and awareness to increase the number.

 “Listing is a business decision, and most of the potential institutions that would want to list on the main board are multinationals, and the control is outside the country and the commission is trying it level best in making the market more conducive by reviewing registration to attract more of these big companies to join the capital market and ensure that registration fees are within manageable levels,” said Lungu.

Article by Justine Phiri