President Hakainde Hichilema has unveiled Zambia’s first ever 10-year Capital Market Master Plan (CMMP) meant to among others, spearhead development of green bonds.
Government has in the Eighth National Development Plan (8NDP) earmarked capital markets as a critical success factor in achieving the objectives of the plan.
According to President Hichilema during the launch of the plan on Thursday in Lusaka, the CMMP had special focus on the development of new and innovative products on markets such as green bonds.
Zambia’s aspiration, he stated, was to become a financial hub that would seek to attract financing, including green bonds
He said this in a speech read for him by Finance and National Development Minister, Situmbeko Musokotwane.
“Under this pillar, the plan motivates for the introductions of innovations such as green bonds, private equity, and virtual capital among others. “This focus area creates an opportunity for the developing products that allow access to capital by Micro, Small and Medium Enterprises through mortgage refinancing,” Hichilema said.
He said another area of focus was improving the traditional security markets which included the stock market, corporate bond markets and collective investments scheme.
He said the CMMP was a comprehensive long term strategy which sets out the primary framework for Zambia’s capital markets development over the next 10 years.
“The plan will ensure that Zambia is an attractive destination to not only local but also foreign investors. The capital markets in Zambia were primarily established to stimulate a dynamic private sector. “I am optimistic that the launch today signals our resolve to set in motion the necessary interventions required to fully develop our capital markets as they are essential for creating employment for the youth,” Hichilema said.
Speaking earlier, Securities Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu said the launch of the CMMP signified that the market developmental efforts will change in to a fast pace moving train.
Chitalu urged the market players to contribute to achieving even further and greater success in the market contribution to economic development.
“This capital markets journey will not end here but should be carried on by those who will take over from us. I think 10 years is a long time. “For capital markets to have intended impact on our economy the common goal should have the capital markets taken to a level where these financial markets are enablers and cane be used to mobilise and channel in an efficient manner funds to the greatest economic impact,” he said.
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