Market Boom, Scam Fears Rise

Zambia’s capital markets record strong growth in Q2, but fraudulent schemes targeting investors are on the rise.

By Francis Maingaila

Lusaka, Zambia24. 19, 2025 – Securities and Exchange Commission (SEC) Chief Executive Officer Phillip K. Chitalu says Zambia’s capital markets recorded strong growth in the second quarter of 2025, posting major gains in market capitalisation, investor participation, and collective investment schemes, while warning of rising fraudulent schemes targeting the public.

Chitalu told journalists in Lusaka that market capitalisation grew by 15% to K296.2 billion, pushing the Market Capitalisation-to-GDP ratio to 53.1%. 

The figure already exceeds the 2027 Capital Markets Master Plan target of 30%, bringing total savings in the market to K304.4 billion, or 55% of GDP.

He, however, cautioned that the market remains heavily concentrated in Shoprite Plc, which accounts for more than 60% of Zambia’s equity market. 

“Excluding Shoprite, the market capitalisation-to-GDP ratio drops to 19%, underscoring the urgent need to diversify and expand participation,” Chitalu said.

Investor participation rose sharply to more than 1.1 million compared to just 120,000 five years ago. 

Collective Investment Schemes also grew, with assets under management climbing 4.25% to K3.3 billion, largely driven by digital platforms that have simplified access for ordinary citizens.

“Mobile technology has made investing more convenient and inclusive, opening opportunities for Zambians to participate in the growth of our capital markets,” he said.

The Lusaka All Share Index (LASI) surged 23.42% to close at 20,214.88 points, compared to 5.9% in the previous quarter. 

Key drivers included Copperbelt Energy Corporation (+56%), ZCCM Investments Holdings (+44%), and British American Tobacco Zambia (+55%).

Despite the positive outlook, Chitalu said liquidity remained a major challenge, with trading concentrated among a few companies. 

“Low liquidity continues to undermine price discovery and limits exit and entry options for investors,” he observed.

On reforms, Chitalu said SEC had met three of its 2024 short-term targets under the Capital Markets Master Plan and made progress on five of ten key performance indicators. 

These included participating in the IMF/World Bank Local Currency Bond Market Diagnostic Mission and hosting a market attractiveness survey to address barriers to listing and capital raising.

The SEC chief also raised alarm over the spread of fraudulent investment schemes, with three major scams uncovered in the quarter. 

“These are not licensed or authorised entities. Their products have not been approved for sale in Zambia. We have issued alerts and urge citizens to remain vigilant,” he said.

To counter scams, SEC has intensified fraud awareness campaigns through radio, webinars, schools, and distribution of educational materials, while working with law enforcement agencies to prosecute offenders.

Looking ahead, SEC will launch World Investor Week, a capital market debate and essay competition, student industrial tours, monthly townhalls, and an expanded Capital Markets Ambassador Programme to promote financial literacy.

“Building a resilient, transparent, and inclusive capital market is not just a regulatory mandate but a national priority,” Chitalu concluded.