JACK ZIMBA,
TRYNESS TEMBO
Lusaka
LUSAKA Securities Exchange (LuSE) has emerged as one of the world’s top-performing stock markets in 2025, with its main index soaring 56 percent between January and August.
The surge, highlighted in a recent Bloomberg ranking, puts Zambia ahead of larger and more established exchanges.
Nigeria’s market gained 40 percent, Ghana 45 percent, while Johannesburg — Africa’s biggest exchange — rose 25 percent over the same period.
LuSE chief executive officer Nicholas Kabaso attributed the rally to investor confidence, strong corporate results, and structural economic reforms.
Key drivers include falling government bond yields — once as high as 34 percent, now around 20 percent — making equities more attractive.
Limited share supply has also intensified competition, pushing prices higher, as no new listings have occurred in the past five years.
Technological innovation has played a role too, particularly the launch of a mobile trading app for retail investors. Corporate performance in the energy and mining sectors has further bolstered the market.
The rally is reshaping Zambia’s economy.
Funds are shifting from bonds to equities, channeling more capital into productive industries like energy, copper, and gold.
Recently, Copperbelt Energy Corporation and ZCCM Investment Holdings crossed the US$1 billion market capitalisation mark, a milestone that could see Zambia included in major global investment indices, attracting more foreign investors and dollars.
“This is how you support the Kwacha,” Mr Kabaso said. “Instead of the Bank of Zambia burning reserves, foreign investors bring dollars to buy shares.”
He added that LuSE’s growth strengthens Zambia’s bid for “frontier market” status within the next five years, a key target in the country’s capital markets master plan.
Despite listing only 20 firms compared to Botswana’s 40, LuSE’s market capitalisation-to GDP ratio has risen from below 20 percent five years ago to 53 percent today.
Analysts note that sustaining momentum requires more listings to boost liquidity and reduce volatility. Still, optimism is high.
“It’s a good time to be alive,” Kabaso said.
“To see Zambia finally on the global investment map — that’s my bread and butter.”
Economist Lubinda Habaazoka highlighted the performance of ZCCM-IH, reflecting the strength of Zambia’s mining sector as it diversifies beyond copper into gold and other ventures.
“The rise of billion-dollar companies shows LuSE is no longer just a frontier exchange but a platform for regional champions,” Dr Habaazoka said.
“It reflects Zambia’s reforms, deeper investor participation, and innovative financial products.”
With three of the past four years delivering double-digit growth and market capitalisation more than doubling since 2021, the challenge now is sustaining the momentum.
“The LuSE rally is more than a financial story, it is a barometer of Zambia’s broader economic renewal,” Dr Habaazoka said.
“With the LASI [LuSE All Share Index] surpassing 24,000 points in 2025 and market capitalisation approaching K200 billion, LuSE is positioning itself as a central pillar of Zambia’s growth narrative.”
