SEC reports strong progress on Capital Markets Master Plan targets

By BUUMBA CHIMBULU

THE Securities and Exchange Commission (SEC) says Zambia’s capital markets are making significant strides, with six out of 10 key performance indicators under the Capital Markets Master Plan (CMMP) recording positive progress as of March 31, 2026.

Speaking at a press briefing recently, SEC Director for Enforcement and Legal Services Diana Sichone said the Commission had continued to coordinate the implementation of the master plan while closely monitoring progress against its performance targets.

Among the standout achievements was the Lusaka Securities Exchange (LuSE) market capitalisation-to-Gross Domestic Product (GDP) ratio, which rose to 51.64 percent by the end of the first quarter of 2026.

The figure exceeded the long-term 2031 target of 33 percent by 18.64 percentage points, reflecting increased market depth and the expanding role of the capital markets in supporting economic activity.

“The Commission also reported a strong rise in the implied market capitalisation of listed companies, which increased from about US$14.9 billion in the first quarter of 2025 to approximately US$17.45 billion in the same period this year, representing growth of 18.05 percent,” Ms Sichone said.

The performance surpassed the medium-term target of US$13.9 billion.

Ms Sichone further revealed that the number of firms in the listing pipeline had reached nine, exceeding the 2027 target of eight companies, a development attributed to ongoing efforts to promote listings on the market.

In sustainable finance, green bond issuances reached around US$150.7 million, comfortably surpassing the medium-term target of US$100 million.

According to Ms Sichone, the milestone was largely driven by issuances under the US$200 million bond programme registered by CEC Renewables.

She also highlighted continued growth in the collective investment sector, with mutual fund assets under management increasing to about US$194.48 million in March 2026 from US$166 million in December 2025.

The 16.17 percent quarterly increase exceeded the 2027 target of US$170 million and was attributed to stronger retail investor participation, improved liquidity and sustained market awareness initiatives.