SEC urges Zambians to invest wisely

The Securities and Exchange Commission SEC has […]

The Securities and Exchange Commission SEC has urged Zambians to invest only in licensed investment products and seek professional advice before committing their money, warning that fraudulent investment schemes continue to target unsuspecting members of the public.

Speaking to Zambian Business Times-ZBT during the 98th Zambia Agriculture and Commercial Show in Lusaka, SEC Director of Policy and Development Mateyo Lungu said the Commission is using this year’s exhibition to educate the public on investor protection while promoting confidence in Zambia’s capital markets under the show’s theme, “Fostering Trade and Investment.”

 Lungu said the annual show provides an important platform for the regulator to engage with investors, businesses, and the public while advancing its mandate of investor protection and capital market development.

“The theme aligns very well with our mandate because we foster trade through trust by building investor confidence and ensuring that people invest through licensed dealers and licensed investment advisers,” he said.

He explained that capital markets play a critical role in economic development by connecting investors with entrepreneurs seeking long-term financing across sectors such as agriculture, tourism, and other productive industries.

 “Capital markets are a bridge between people with money and those with investment ideas. They provide long-term financing that supports economic growth, including sustainable agriculture and green financing initiatives,” Lungu said.

He noted that the rise in Ponzi schemes is largely driven by limited public awareness, with many victims being attracted by promises of unusually high returns. “If an investment promises returns that are too good to be true or significantly higher than normal market returns, that should immediately raise a red flag,” he warned. Lungu advised prospective investors to verify that investment products and service providers are licensed by the SEC before investing and to compare promised returns with established financial instruments such as government bonds and Treasury bills.

He further encouraged showgoers to visit the Commission’s stand to learn how to become informed investors, detect scams, and report suspicious investment activities. “We want members of the public to become smart investors by understanding how to identify scams, report them, and protect themselves from fraudsters,” he said.

Article by Karen Ngulube