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The Zambian government has embarked on a project to develop the Capital Markets Master Plan (CMMP) in collaboration with the Securities and Exchange Commission and other key capital markets players. The CMMP is a comprehensive ten-year long-term strategy for capital markets development in Zambia aimed at providing sustainable long-term financing solutions to real sectors such as energy, agriculture, tourism, and mining. The CMMP aims to achieve a classification of a frontier market rating by 2027, a market capitalization of 27% of Gross Domestic Product by 2024, double listings by 2031, and broaden product landscape by introducing products such as Green Bonds, Exchange Traded Funds, Real Estate Investment Trusts, Derivatives, etc.
The broad objectives of the CMMP are to transform Zambia into a choice market for domestic issuers and investors, enable the Zambian capital markets to play a greater role in acting as a source of funds to the real sector of the economy, develop deeper and more liquid capital markets based on strengthening financial markets infrastructure, actively promote Zambia’s attractiveness as an investment destination for financial services, and implement capacity-building programs to strengthen various stakeholders.
To achieve the above, the CMMP identifies and sets out five development areas most pertinent to the development of the Zambian capital markets. These development areas include increasing market participation, improving market quality, strengthening market infrastructure, promoting financial literacy, and enhancing regulation and supervision. The CMMP launch is planned to take place on 23rd February 2023, followed by the Second (2nd) Capital Markets Indaba aimed at highlighting the government's commitment towards capital markets development and discussing the salient features of the CMMP document. The Indaba aims to unpack priority issues referencing existing analyses on the current state of the local capital market and prioritize the roadmap for the Implementation Matrix of the CMMP.
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