Capital Markets Master Plan 2022

The Capital Markets Master Plan 2022 outlines a ten-year roadmap to transform Zambia's capital markets into an attractive international destination for long-term investment. The plan is structured around five thematic development areas: enhancing the government bond market, improving traditional security markets (equities and corporate bonds), developing innovative products (such as green bonds, ETFs, and REITs), building capacity across regulators and practitioners, and strengthening the regulatory environment. Key goals include increasing the Lusaka Securities Exchange (LuSE) market capitalization to 33% of GDP by 2031, launching the country's first green bond, and establishing a primary dealership system for government bonds. The strategy emphasizes the need for a transparent, efficient, and trusted market to mobilize private finance for infrastructure, agriculture, and energy projects.

• The Zambian capital market is currently characterized by low liquidity, with a domestic share turnover ratio of 3.3% as of October 2022.
• Zambia's government bond market lacks transparency in its auction process, with results and yields not communicated to the market in a timely manner.
• The plan aims to increase the number of firms listed on the LuSE from 23 in 2022 to 40 by 2031, with a target of 27 firms by the end of 2024.
• Zambia intends to launch its first green bond by the end of 2022 to attract climate-conscious capital and combat climate change.
• The plan proposes the creation of a primary dealership system where commercial banks are obligated to quote buy and sell prices for government bonds to increase liquidity.
• Zambia currently operates two separate Central Securities Depositories (CSDs) run by the LuSE and the Bank of Zambia, which creates inefficiencies and duplicate costs.
• The National Pension Scheme Authority (NAPSA) holds substantial funds primarily in non-actively traded government bonds; the plan seeks to diversify these holdings into equities, corporate investment schemes, and private equity.
• Zambia lacks an MSCI rating, which the plan aims to address by targeting a 'frontier' classification in the medium term to inspire foreign investor confidence.
• The plan identifies a need to develop a pipeline of companies for listing, targeting five firms to enter the pipeline by the end of 2024.
• The mutual fund industry in Zambia is small, valued at approximately USD 68 million (less than 1% of GDP), with a target to increase this to USD 100 million by 2024.
• The plan proposes the introduction of Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) by 2027 to broaden the investor base.
• Zambia's minority shareholder protections are ranked lowest among its peer group, necessitating updates to regulations regarding independent directors and conflict of interest disclosures.
• The plan aims to improve property rights to reach a target of 5 out of 7 on the World Economic Forum's competitiveness rating in the medium term to protect foreign investment.

APA

FSD Africa (2022). Capital Markets Master Plan 2022. https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Master-Plan_Final_for-Print_16.12.22.cleaned.pdf

Chicago

FSD Africa. Capital Markets Master Plan 2022. 2022. https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Master-Plan_Final_for-Print_16.12.22.cleaned.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Capital Markets Master Plan 2022 |date=2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Master-Plan_Final_for-Print_16.12.22.cleaned.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2022capital, author = {{FSD Africa}}, title = {{Capital Markets Master Plan 2022}}, institution = {FSD Africa}, year = {2022}, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Master-Plan_Final_for-Print_16.12.22.cleaned.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }