Zambia’s Securities and Exchange Commission CEO Philip Chitalu has indicated that he is optimistic about the prospects of the Secondary Bond Market which his agency provides oversight.
Speaking to the press on 31st January 2023, the Philip gave an account of the 2022 performance of Zambia’s Capital Markets. He indicated that during the year, the equities market total savings grew by 8.05%. Furthermore, the Market Capitalization of the Lusaka Securities and Exchange Commission grew by 8% with Assets under management growing by 28.13%.
“Having launched the Capital Markets Plan in the latter part of 2022, we are optimistic that we can develop our capital markets”, said Philip during a press briefing held at the SEC offices in Lusaka.
The CEO believes that part of the reason why the secondary bond market has not been developed is that there is lack of information. Some of the information that is lacking is the pricing of secondary market bonds. He indicated during the press briefing that the SEC is looking to change this in 2023 by introducing regular secondary market pricing for information asymmetry on the market.
Furthermore, highlighting the predictability of bonds and how they can aid personal financing was another way interest in the secondary bond market can be promoted. Philip gave an example of personal planning for payment of school fees for children. With predictable coupon payments, school fees payment can be planned for over the long term.