ZDA, LuSE Partner to enhance businesses

The Lusaka Securities Exchange (LuSE) and the Zambia Development Agency (ZDA) have signed a Memorandum of Understanding (MoU) aimed at improving access to long-term capital for businesses and strengthening private sector-led economic growth. Speaking during a joint press briefing…

The Lusaka Securities Exchange (LuSE) and the Zambia Development Agency (ZDA) have signed a Memorandum of Understanding (MoU) aimed at improving access to long-term capital for businesses and strengthening private sector-led economic growth.

Speaking during a joint press briefing today, ZDA Director General, Albert Halwampa, says lack of access to capital remains a major obstacle to the actualisation and expansion of investment projects in the country.

Mr Halwampa notes that the partnership will particularly support existing and expanding businesses, including small and medium enterprises (SMEs), to list on LuSE and raise capital for investment, job creation and economic growth.

He has disclosed that many investment projects facilitated by ZDA fail to reach financial closure because investors struggle to access appropriate capital.

Mr Halwampa has further noted that the partnership will also leverage the Zambia Investment Deal Room, a digital platform established to connect local and foreign fund seekers with potential fund providers.

He explained that the MoU will strengthen collaboration between ZDA and LuSE in investment promotion, access to markets, green financing and trade promotion, including support for exporters seeking capital to expand.

Mr Halwampa pointed out that SMEs are critical to the future of Zambia’s economy and should be encouraged to consider LuSE as an alternative platform for raising capital.

“ZDA has registered close to 3,000 greenfield and brownfield companies between 2021 and 2026, many of which require financing to actualise or expand their investments,” he added.

He further said the partnership will help create a pipeline of businesses that can access capital through LuSE while supporting the government’s agenda of promoting trade, investment, job creation and economic growth.

Mr Halwampa reaffirmed ZDAs commitment to work with LuSE to ensure that investors, both local and foreign, benefit from the opportunities created through the MOU.

Meanwhile, LuSE Chief Executive Officer Nicholas Kabaso said the partnership will connect ZDA’s investment promotion and enterprise development mandate with the exchange’s role of mobilising long-term capital.

Mr Kabaso also re-echoed that access to long-term capital remains a major constraint for businesses despite Zambia’s significant entrepreneurial potential.

He said the partnership will encourage more businesses, particularly micro, small and medium enterprises (MSMEs), to consider the capital market as part of their growth strategy.

“Listing on the Exchange provides businesses with access to capital while strengthening corporate governance, credibility and visibility,” said Mr Kabaso.

He said the partnership will also focus on financial literacy, corporate governance, financial reporting and identifying barriers that discourage companies from accessing the capital market.

“LuSE currently has four companies with market capitalisation exceeding US$1billion, so there is need to develop a stronger pipeline of businesses capable of reaching that scale,” he added.

He said the success of the MoU should ultimately be measured by the businesses supported, capital mobilised, investments attracted and companies brought to the exchange.

Mr Kabaso said the partnership marks the beginning of efforts to build a pipeline from entrepreneurship to investment, growth and ultimately listing, further calling for continued collaboration.