Lusaka Securities Exchange CEO on business strategy, listings outlook

The Lusaka Stock Exchange has been making waves in the financial markets with a 21 per cent increase year-to-date in the month of May, coupled with a recent memorandum of understanding geared towards enhancing small and medium-sized enterprise participation. CNBC Africa recently sat down with Nicholas Kabaso, the Chief Executive Officer of the Lusaka Securities Exchange, to delve into the business strategy and listing outlook of the exchange.As the newly appointed Vice Chairperson for the Committee of SADC Exchanges, Kabaso shared insights on the significance of this role not only for the Lusaka Stock Exchange but also for the Zambian market at large. The last time the Lusaka Stock Exchange held the Chairman role for the SADC exchanges was in 1998, making this appointment a remarkable milestone. Kabaso expressed the ambition of the exchange to drive growth, expand listings in both equity and new bond products, and explore new markets both locally and internationally, aiming to increase market capitalisation and garner attention from global investors.While discussing the pipeline for new listings, Kabaso highlighted the healthy interest from SMEs and large corporates in Zambia, revealing ongoing conversations with various sectors to bring more businesses to market. He emphasized the stability of the Zambian macroeconomic and political landscape as a compelling incentive for investors and issuers looking at the Lusaka Stock Exchange. Kabaso noted that the recent debt restructuring and favorable credit rating have further boosted investor confidence, creating opportunities to attract international capital.Another focus for the exchange is the introduction of new products, such as green bonds, corporate bonds, and exchange-traded funds (ETFs), to address global challenges and cater to evolving market needs. Kabaso underlined the importance of collaborations with institutions like the Bank of New York Mellon and other capital markets to tap into additional investor pools and enhance market growth. Looking ahead, Kabaso outlined plans to prioritize market growth for the remainder of the year, aiming to capitalize on the opening economy and drive a more aggressive agenda to attract issuers and investors to the vibrant Zambian market.