Financing in Zambia remains a challenge for companies and listing on LuSE was seen as an answer to diversify and provide alternatives to bank and micro finance debt sources of finance but LuSE has not attracted any new listings lately.
The Lusaka Securities Exchange-LuSE has disclosed that it has not received any applications for listing on the securities exchange so far this year.
LuSE Business Development Officer Lina Lungu said the company does as much as it can to encourage companies to list on the securities exchange but that is how far it can go, as companies cannot be forced to list on LuSE.
Speaking in an interview with the Zambian Business Times-ZBT, Lungu noted that the securities exchange only has 22 companies listed as at now adding that companies are in a better position to explain why they are not listing on LuSE.
“You have to ask the companies to say, what is the impediment, why aren’t you coming to list on the market because the LuSE does as much as it can to encourage but you can’t force the companies to list, it’s a decision the company makes”, she said.
Lungu explained that companies have their own reasons as to why they are not listing on LuSE and these may be economic conditions or they may be finding it difficult to meet the listing requirements.
The Securities and Exchange Commission-SEC had in the past told ZBT that one of the reasons why companies are not listing on LuSE is because the country has SMEs that are small in size and cannot meet the listing requirements but still need funding.
SEC had mentioned that the other major reason is the lack of awareness among Zambians about the possibilities of investing through capital markets and the macro economics which had not been very stable.
