Did you know that only one SME is Listed on LuSE?

Company listing on the Lusaka Securities Exchange […]

Company listing on the Lusaka Securities Exchange remains below 30 with only one Small Medium enterprise listed on the exchange of which to some experts the numbers seems to be low requiring more company engagement in increasing awareness for potential listings that will help in enhancing li we liquidity, especially now that Zambia eyes to list on the Morgan Stanley.

According to the Lusaka Securities Exchange Chief Executive officer Nicholas Kabaso, small and medium enterprise remains the backbones of Zambia’s economy even though the segment has not been optimised due to the exchange having one SME listed on the market.

 Speaking in an interview with Zambian Business Times- ZBT Kabaso noted that LuSE is reviewing its current regulatory framework to enable more companies to join the market. Kabaso noted that addressing some of the listing rules which inherently have become a stumbling block for small businesses to list, will make the more conducive to accommodate good business to be able to raise money on the long-term on the exchange

“ Other than the vanilla equities and other products which the exchange is trying to bring in, LuSE has had debt market, which is medium to long-term debt products but we have also had commercial papers which are a one year capital raising facility needing more sensitisation for potential investors to join the market,” said Kabaso.

 He also disclosed that the exchange is in talks with the mines discussing on how best mining firms can be accommodated on the exchange considering the current level of capital raising that can be facilitated by LuSE.

“ We are looking at issues to do with the global depository receipts because some of these mines are already raising money on other international capital markets like the New York exchange which are more liquid ofcourse they can list directly on LuSE but due to other reasons but allow the Zambian public to also enjoy the other privileges other international exchange these mines are listed enjoy”, said Kabaso.

He added that the global depository receipt will help to bridge the current issue which the country is experiencing where mining companies are indicating that the exchange doesn’t have depth to raise an amount that may be needed by the mines.

Article By Justine Phiri