LuSE to Launch First Gold ETF as $1bn Listing Pipeline Builds

The Lusaka Securities Exchange will list its first exchange-traded fund before the end of October, giving Zambian investors direct exposure to gold.

The fund is sponsored by South African lender Absa Group and will list by introduction from the Johannesburg bourse, LuSE Chief Executive Officer Nicholas Kabaso said in an interview in Nairobi. Gold ETFs have had a strong year globally, with total holdings up 1 per cent to 100 million ounces as prices climbed.

Kabaso, speaking on the sidelines of an industry conference, said the exchange has also lined up five company listings across manufacturing, mining and telecommunications, with initial public offerings expected to raise around US$1 billion.

"Potentially we might be listing two this year and then possibly push the other three to next year," he said.

Among the prospective issuers, majority state-owned ZCCM Investments Holdings is weighing a sale of part of its shares to meet the exchange's requirement for a minimum 25 per cent free float.

The LuSE all-share index has risen 1.3 per cent this year, taking total market value to K124.5 billion, about US$6.36 billion. Airtel Networks Zambia, Zambia National Commercial Bank and Real Estate Investments Zambia are among the leading gainers.

Kabaso said foreign investor demand for both bonds and equities had recovered since August's election, in which President Hakainde Hichilema was returned with nearly 61 per cent of the vote.

"All these are coming obviously on the back of renewed confidence that there will be policy consistency," he said.