History of the Lusaka Securities Exchange Plc.

The Lusaka Securities Exchange Plc. (LuSE) was established in 1993 through the collaborative efforts of the International Finance Corporation (IFC) and the World Bank. these two organizations provided the technical support during establishment of the LuSE.

LuSE opened its doors for business on 21st February 1994. The establishment of the Lusaka Securities Exchange Plc. was part of government’s broader economic reforms aimed at stimulating a dynamic private sector to be the primary engine for economic growth in Zambia. It was also motivated by the need to deepen awareness and understanding of financial and capital markets in support of the emerging private sector.

Securities and Exchange Commission (SEC)

The private sector reform program was anchored on the Privatization Act No 21 of 1992. The Act recognized the importance of citizens’ participation in the growing economy. Through the Zambia Privatization Trust Fund (ZPTF), the Act sought to hold shares from the privatized state companies on behalf of Zambians for divestiture. The aim was to achieve a wider distribution of shares amongst local citizens. The other objectives for the development of the Capital Market were;

  1. To enable local businesses to raise relatively cheaper long term capital,
  2. To empower citizens through ownership of shares,
  3. To attract foreign direct investment (FDI) and
  4. To enable companies achieve improved corporate governance through wider share ownership.

The establishment of a exchange was seen as a vehicle to attain these objectives to ensure equitable, efficient and transparent mechanism for Zambians to create their own wealth creation. Amendments to the Securities Act (1972) led to the Securities Act, Chapter 354 of the Laws of Zambia (1993) that established the Securities and Exchange Commission (SEC) to regulate the securities industry. The SEC is a corporate body that is given powers under the Securities and Exchange Act to regulate and supervise the securities industry in Zambia. The regulatory powers of the Commission have four major requirements:

  1. Any person dealing or advising on securities must be licensed by the SEC,
  2. Any securities market must be licensed as a Securities Exchange by the SEC,,
  3. All securities of a public company which are publicly traded must be registered by the SEC, and,
  4. Collective investment schemes must be authorized by the Commission.

A Compensation Fund established under the Act is aimed at creating investor confidence and designed to compensate persons who suffer a pecuniary loss occasioned by default of a licensed dealer or licensed investment adviser, which could otherwise lead to investors losing confidence in the securities industry in Zambia.

Mandate and Structure of the Lusaka Securities Exchange Plc


The 1972 Securities Act revised to facilitate the establishment of the Securities Exchange. It was structured around models of a modern Stock Exchange with automated clearing and settlement facilities through a Central Securities Depository (CSD). The Government of the Republic of Zambia (GRZ) provided grant financing to LuSE from 1993 till 2009. Subsequently, GRZ stopped providing support and LuSE became totally dependent on its listed companies to generate operational revenues. The sustainability of LuSE became dependent on increasing the number and size of companies that listed on the Exchange.

The Lusaka Securities Exchange Plc. (LuSE) is the principal stock exchange in Zambia. The LuSE is a legally mandated company or corporate entity whose main activity is the operation of a securities exchange for dealing in shares, bonds, and other securities in accordance with the Securities Act No. 38 of 1993. It was founded in 1993 in Lusaka. The Exchange opened on 21st February 1994.

The LuSE’s core mandate is to provide a fair and efficient platform through transparent and equitable trading of the listed securities. LuSE contributes to wealth development, financial services and a platform for investment for foreign and local investors. It provides a platform where companies can raise long term capital and secondary trading of shares. LuSE also provides facilities for the listing of securities and provides users with an orderly, transparent and regulated platform to trade.