‘10-year Capital Markets master plan to reignite economy’

ZAMBIA is set to witness a boom in capital markets funded investments following cabinet’s approval of the 10-year Capital Markets Master Plan which had been

LUSAKA

proposed by industry stakeholders.

The idea of the master plan is for capital markets to fund long term investments, particularly for key economic sectors.

This is according to the Securities Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu in an interview in Lusaka.

About two weeks ago, Cabinet approved the Capital Markets Master Plan which will provide for clear listing rules for green bonds on the local bourse the Lusaka Securities Exchange (LuSE).

This follows UBUNTU years NEWS of strategising by SEC, Ministry of Finance and National Plan

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market stakeholders.

Commenting on the approval, Mr Chitalu emphasised that capital markets was a conduit or an enabler for sending capital to the relevant sector of the economy, thereby making the master plan significant.

“The idea is long term capital to fund long terms investments and mind you with some of the econom

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ic sectors, what you need is long term capital. The issue is that if I want to build a power plant which will be there in the next 25 to 50 years, I think it is not ideal to borrow short term, like over seven years.

“So you need to match your capital with your type of investment that you are doing, so we are very hope

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Chitalu said.

He WEDNESDAY explained that SEC

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other stakeholders hoped to actualise quite a number of strategies contained in the master plan.

Mr Chitalu further explained that the implementation of the actual document had detailed plan.

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“Whilst capital markets

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are about bonds and trading, the primary markets for Gov

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ernment bonds is the Central

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bank. So if we want to further develop bond trading, then the central bank becomes like a primary entity to help come up with strategies or developmental agenda.