SEC Launches Investor Week

... Highlights Digital Finance, Sustainable Investments, and the Importance of Fraud Prevention

By Francis Maingaila

Lusaka, Zambia24 - (23-10-2024) - The Securities and Exchange Commission (SEC) has officially launched the 2024 World Investor Week, with a focus on digital finance, sustainable investments, and fraud prevention. The event, part of a global initiative led by the International Organization of Securities Commissions (IOSCO), seeks to raise awareness about informed investing and financial protection.

SEC Chief Executive Officer, Philip Chitalu, emphasized the importance of investor education, particularly in light of evolving financial technologies and the growing prevalence of online scams.

"Investor education is crucial," Chitalu said. "We must ensure that our citizens are informed, especially with the rise of digital platforms and new financial products."

This year’s theme, "Be a Smart Investor: Learn More About Digital Finance and Sustainable Finance," underscores the significance of adapting to the rapidly changing financial landscape.

Chitalu highlighted how mobile banking and other digital platforms have transformed financial management, encouraging Zambians to embrace these tools while remaining cautious of potential fraud.

"Digital platforms have reshaped how we manage our finances, but they also bring risks, especially with the rise of scams," he warned.

Sustainability also took center stage, with Chitalu advocating for green financing as a means to address global environmental challenges.

"Without sustainability, financial management is at risk. We must focus on climate-conscious investments that benefit both the environment and our economy," he urged.

Chitalu further stressed the need for vigilance against fraudulent schemes, particularly those disguised as "get-rich-quick" opportunities.

He encouraged investors to conduct thorough research and make informed decisions to safeguard their investments.

The event is aligned with Zambia's National Strategy on Financial Education, aimed at increasing financial literacy and empowering citizens to make sound financial decisions.

"We want Zambians to have the confidence to make informed financial choices, not just for themselves but for their families as well," Chitalu noted.

As part of World Investor Week, the SEC has launched various educational initiatives, including a short film series designed to simplify complex financial concepts for the public. 

The commission also recognized the winners of the 2023 essay writing competition, commending them for their commitment to enhancing financial literacy.

The SEC's collaboration with key stakeholders, including the Capital Market Association of Zambia (CMAZ), has played a vital role in advancing investor protection and promoting transparency. 

Joseph Mazila, President of CMAZ, praised the SEC’s efforts, stating, "Our partnership has been instrumental in developing a strong capital market that is both inclusive and competitive."

The launch of World Investor Week 2024 is seen as a crucial step towards fostering a more financially literate and resilient population. 

Chitalu concluded the event by calling for continued collaboration among all stakeholders, emphasizing the immense opportunities the week presents for investors to become more informed and vigilant in an ever-evolving financial world.

Representing SEC Board Chairperson Ruth Mugala, Dr. Leonard Nkole Kalinde emphasized Zambia's dedication to economic growth and the critical role of financial literacy in that process. 

"Financial literacy is the cornerstone for future development," Dr. Kalinde said, stressing that investor education is key to making informed financial decisions. 

He also underscored the importance of adapting to an evolving financial landscape. "As we continue to grow our economy, it is vital that our citizens understand the financial opportunities and risks before them."

Dr. Kalinde highlighted the urgency of improving financial literacy in Zambia, particularly with the rise of digital assets and cryptocurrencies. 

He said, "Digital assets are changing the financial landscape, and it is crucial that we educate the public about these products."

 Kalinde also called for the adoption of sustainable finance practices, noting that they are essential for combating the effects of climate change. 

"Sustainability in finance is not just an option; it is a necessity if we want to protect our environment and secure our financial future," he added.

In addition to local issues, Dr. Kalinde addressed global challenges, such as the geopolitical risks posed by the Russia-Ukraine conflict, which he said could impact Zambia’s financial markets. 

"While we may feel far removed from these conflicts, their effects on global markets can reach our shores. Investors need to remain resilient and focused on long-term financial goals," he said.

Kalinde praised the involvement of students in discussions on global financial issues, describing it as "a positive step towards enhancing financial education." 

He said this initiative aligns with Zambia’s broader goal of increasing financial inclusion, ensuring that more citizens have access to financial services. 

He added, "Our young people are the future of this country, and equipping them with financial knowledge is essential for our economic success."

Winners of the 2023 essay writing competition were also recognized at the event. 

Dr. Kalinde commended the participants, stating, "Their dedication to learning about finance at such a young age is inspiring. I encourage them to continue on this path, as they are the future leaders of our financial sector."

In his remarks, SEC Chief Executive Officer Philip Chitalu warned investors about fraudulent schemes, particularly "get-rich-quick" scams. 

He urged investors to conduct thorough research and make informed decisions in the rapidly changing financial landscape.

"The rise of digital finance has brought new opportunities, but also new risks. We must be vigilant," Chitalu said.

He emphasized how digital finance, especially mobile banking, has transformed the way people manage money. 

"Digital platforms have revolutionized financial management," Chitalu said, while cautioning Zambians to be careful of online fraud. 

"As we embrace digital finance, we must do so wisely, with an awareness of the risks involved."

Sustainable finance was another key topic of the event. 

Chitalu highlighted the importance of green financing as a response to global environmental challenges. 

"Without sustainability, our financial systems are at risk," he stated, adding that investments in climate-conscious projects are essential for long-term stability.

Chitalu also addressed the rise of financial technology (fintech) scams, advising investors to remain cautious. 

"As fintech continues to grow, so do the risks. Investors need to stay informed and avoid falling prey to deceptive schemes," he cautioned.

The event also saw the launch of a short film series designed to simplify financial concepts for a wider audience. 

Chitalu called for ongoing collaboration between stakeholders to promote investor education. 

"The 2024 World Investor Week presents a valuable opportunity for all participants to become more informed investors," he noted, urging the public to engage with the resources provided during the week.

Joseph Mazila, President of the Capital Market Association of Zambia (CMAZ), commended the growth and development of the country’s capital markets, attributing much of the success to the strong partnership between CMAZ and the SEC.

 "Our collaboration with the SEC has been pivotal in advancing initiatives that protect investors, enhance transparency, and build confidence in Zambia's capital markets," Mazila said.

Speaking at a industry event, Mazila emphasized the importance of maintaining Zambia’s competitiveness in the global market. 

He stressed that the ongoing efforts are crucial for attracting both domestic and international investors. 

"Zambia must remain competitive, and our partnership with the SEC ensures that we continue to create a favorable environment for investment," Mazila said.

Mazila pointed to the Capital Markets Master Plan (CMMP) as a key factor in Zambia’s financial progress.

 "The CMMP is a ten-year roadmap designed to diversify our financial system, making it more inclusive and accessible," he explained.

 The plan aims to provide businesses with greater access to capital while offering investors a broader range of investment products.

"The CMMP is built on important pillars, including improving market infrastructure, increasing financial literacy, and promoting green finance initiatives. These are essential for fostering sustainable development in our country," Mazila added.

Mazila also acknowledged the introduction of new financial products, such as green bonds and private equity, which reflect Zambia's commitment to aligning with global trends in sustainable finance. 

"Our markets are becoming more adaptable, offering attractive opportunities for investors while keeping pace with the global movement towards sustainability," he said.

Mazila further highlighted the association’s commitment to investor education. He noted that financial literacy is key to increasing market participation and providing the liquidity needed for long-term growth.

 "Educated investors are empowered investors," he said, adding that SEC's education programs play a critical role in making financial services accessible to ordinary Zambians.

Mazila concluded by praising SEC for its dedication to creating a regulatory environment that encourages innovation while safeguarding investors’ interests. 

"Our joint efforts will ensure that Zambia’s capital markets remain robust, transparent, and inclusive," he said. 

Mazila expressed confidence that the continued partnership between CMAZ and SEC would unlock new opportunities for the growth of the sector.