Zambia's stock market, the Lusaka Securities Exchange (LuSE), is preparing for a robust 2026 with several new stock listings and the introduction of a gold-linked Exchange Traded Fund (ETF). This move aims to capitalize on the ongoing rally in precious metals. Nicholas Kabaso, CEO of the LuSE, indicated that the bourse also plans to streamline some of its regulations to enhance market accessibility, thereby attracting a wider range of issuers and investors.
The LuSE has already demonstrated strong performance, ranking as Africa's top-performing stock market in early 2026 and globally as the second-best performer in January, with a nearly 17% gain in US dollar terms. This rally is attributed to factors like record-high copper prices and expectations of accelerated economic growth. The market's positive momentum is further fueled by a successful debt restructuring, a declining inflation rate (reaching 6.5% by June 2026 from 11.2% in Q4 2025), a strengthening Kwacha, and a 7.7% economic growth rate.
Investor confidence has been significantly boosted, reflected in the equities market where market capitalization climbed to K341.9 billion, and the number of investors increased by 11% to 92,000. Notable stock performances include Networks Zambia (+122%) and ZAMEFA (+100%). Zambia Sugar became the third company to exceed a $1 billion market capitalization, joining Copperbelt Energy and ZCCM-IH. In the bond market, a January auction for K4.2 billion saw bids exceeding K9 billion, indicating strong investor appetite.
The LuSE's strategic developments include simplifying listing rules and a promising pipeline of new listings. Klapton Reinsurance successfully listed in March 2026, and a planned IPO for Zamtel is anticipated later in the year, aiming to broaden citizen participation in the telecommunications sector. Additionally, the potential for up to $1 billion in IPOs is foreseen, largely driven by the copper sector's expansion, as mining companies seek capital for growth and new projects, aligning with Zambia's goal to increase annual copper output to 3 million tonnes by 2031.
