Last year was a progressive one in terms of capital market development. In September 2014, the Bank of Zambia introduced a new CSD and RTGS system bringing about efficiencies in the bidding and settlement process for government securities.

In August 2014 the Lusaka Stock Exchange (LuSE) concluded the allocation of International Securities Identification Numbers (ISINs) for Zambian treasury bills. The use of ISINs for treasury bill trades was made compulsory from September onwards. The market saw its first IPO in six years. Lastly, the LuSE enforced the 25% free float requirements for listed stocks.

These developments have contributed positively to the efficiency, risk and therefore attractiveness of the Zambia market. Pertinent changes planned for 2015 onwards include the operationalisation of a bond and derivatives exchange, the separation of the CSD from the LuSE, and the linking of that CSD currently attached to LuSE and the Bank of Zambia CSD systems.

“The sub-custody market in Zambia is small relative to markets like Kenya, Ghana and Nigeria; however Zambia remains a popular investment destination for foreign investors,” says Moses Simbeye, head of investor services, Stanbic Bank Zambia.