By HELEN ZULU? –
THE Security and Exchange commission (SEC) has welcomed the 2015 National Budget noting that Government acknowledged the role capital markets play to drive economic growth forward.
SEC chief executive officer Wala Chabala said from the capital markets viewpoint, the 2015 National Budget was very good with regard that it actually acknowledges the role the capital markets played in empowering Zambians.
Dr Chabala observed that Finance Minister Alexander Chikwanda’s pronouncement that all entities listed on the Lusaka Stock Exchange (LuSE) should comply with listing requirements, showed that the Government was serious about using the capital markets to empower the?Zambians economically.
‘‘From the capital market point of view, the 2015 National Budget is very good with regard that it is actually it acknowledges the role that the capital markets play in the economy in the process of?economically empowering the Zambians,” he said.
Dr Chabala said another significant development in the 2015 National Budget was that Government acknowledged that the Alternative Investment Market on LuSE would go a long way in helping the small and Medium Enterprises (SMEs).
He said SMEs were key drivers of the economy and had potential to create more jobs.
Dr Chabala said SMEs were the largest employers in any country, hence the move by Government would help them to grow and employ more people.
He said such frameworks would allow SMEs to raise funds from the stock market at an affordable cost and tap into technical and managerial skills through new equity partners.
Mr Chikwanda said to further enhance medium to long term financing for SMEs, Government would support initiatives such as the Alternative Investment Market launched by LuSE.
LuSE listing requirements stipulated that no single shareholder should control more than 75 per cent of the equity in any company.
This was to ensure that more of our citizens participate in the capital markets.
He, therefore, directed the SEC to ensure that all listed companies complied with the requirement and that to show compliance, Government had with immediate effect reduced its shareholding in the Zambia Consolidated Copper Mines – Investment Holding to 60 per cent from 87 per cent.?Mr Chikwanda said the 27 per cent shares would be sold to Zambian citizens as a way of entrenching economic independence through empowerment programmes.