LUSAKA – Zambia will require state-owned companies to list on its stock exchange, the finance minister said on Friday, a move that could help invigorate the small equity market in Africa’s top copper producer.
“For government-owned companies, government will require them to list to enhance capitalisation and afford Zambians a chance to own stock,” finance minister Alexander Chikwanda said in a statement.
He also appealed to all companies of “meaningful size” to list on the Lusaka bourse.
State-owned companies include the Zambia State Insurance Corporation, the National Airports Corporation and the Zambia National Broadcasting Corporation.
There are currently 24 companies listed on Lusaka’s All-share index. Regulators and governments in frontier African countries are keen to draw more investors to equity markets.
However, that growth has been hampered by low liquidity and the shortage of listed firms.
The All-share index is down 8.2 percent so far this year in local currency terms and down 3.5 percent in dollar terms, making it one of the worst performers in sub-Saharan Africa.
