LuSE, ZDA Join Forces to Unlock Long-Term Business Capital

The Lusaka Securities Exchange (LuSE) and the Zambia Development Agency (ZDA) have signed a Memorandum of Understanding aimed at improving businesses’ access to long-term capital and strengthening private sector-led economic growth.

Speaking at a joint press briefing, ZDA Director General Albert Halwampa said limited access to appropriate financing remains one of the biggest barriers to investment and business expansion.

He said the partnership will support existing and growing businesses, particularly small and medium enterprises, to access capital markets and consider listing on LuSE as a means of financing expansion, creating jobs and driving economic growth.

Halwampa noted that many investment projects facilitated by ZDA fail to reach financial closure because investors struggle to secure suitable funding.

The partnership will also leverage the Zambia Investment Deal Room, a digital platform connecting local and foreign fund seekers with potential financiers.

Halwampa said ZDA had registered nearly 3,000 greenfield and brownfield companies between 2021 and 2026, many of which require financing to implement or expand their investments.

LuSE Chief Executive Officer Nicholas Kabaso said the agreement would connect ZDA’s investment promotion mandate with the Exchange’s role in mobilising long-term capital.

He said the partnership would encourage more micro, small and medium enterprises to view the capital market as part of their growth strategy.

“Listing on the Exchange provides businesses with access to capital while strengthening corporate governance, credibility and visibility,” Kabaso said.

The collaboration will also focus on financial literacy, corporate governance, financial reporting and identifying barriers that prevent companies from accessing capital markets.

Kabaso said LuSE currently has four companies with market capitalisation exceeding US$1 billion and stressed the need to build a stronger pipeline of businesses capable of growing to similar levels.

He said the success of the MoU should ultimately be measured by the number of businesses supported, capital raised, investments attracted and companies brought onto the Exchange.

The partnership, he added, is expected to create a clearer pathway from entrepreneurship and investment to business growth and eventual listing on LuSE.