Initiative meant to support growth of capital markets launched

AN initiative called Chartered Institute of Securities and Investments (CISI) Zambia Regulatory Assessment module meant to help support the growth of the local capital markets and address the skills gap in the industry has been unveiled.

The launch of the CISI Zambia Regulatory Assessment module follows a partnership between Securities Exchange Commission (SEC) and CISI, which is a leading global professional body for practitioner in financial services.

For any market to develop and function properly, it is imperative that the market players possess the right skills, says SEC board Chair Ruth Mugala.

Ms Mugala said given the serious skills gap that existed in the Zambian capital markets industry and in a bid to build the required skills-sets locally, the commission resolved to further a partnership with CISI from the United Kingdom.

She said this at the launch of the initiative recently in Lusaka.

“In 2016, a memorandum of understanding (MoU) was signed between CISI and SEC. Under the MoU, the parties agreed to develop a special relationship to support practitioners to attain, maintain and develop knowledge, skills and promote the highest standards of ethics and integrity in the securities and investment industry in Zambia and the region among others,”Ms Mugala said.

The two parties, Ms Mugala said, worked together to create a licensing programme that would help support the Zambian capital markets and contribute to ensuring the highest professional standards.

And Ministry of Finance and National Planning Permanent Secretary development cooperation, monitoring and evaluation Danies Chisenda.

said Government was aware that the capital market constitutes a key component of the financial sector, hence its further development was a priority.

“Zambia like other countries in sub-Saharan Africa is faced with the challenge of lack of access to long term investment capital to spur economic development. This can partly be explained by the lack of fully developed capital markets.

“A well developed and regulated capital market can serve as a source of the much needed long term investment capital to spur economic growth. Therefore, we look at the capital markets as an enabler for economic development,” Mr Chisenda said.

Mr Chisenda said it was thus, critical that the local capital market matures and had the required skills to manage sophisticated investments.

He was optimistic that CISI would ensure that the regulatory assessment module which has been launched was packed with knowledge as it relates to the securities legislation of the country.