Securities and Exchange Commission (SEC) says total outstanding corporate bonds in Zambia declined by 4.4 percent in the second quarter of 2026 to K4.039 billion, from K4.228 billion recorded in the first quarter.
SEC Director for Policy and Market Development, Mateyo Lungu said the decline occurred despite the issuance of notes valued at K61.2 million by Zambia Home Loans, largely due to the appreciation of the Kwacha against the United States dollar.
Speaking during the SEC Q2 media briefing, Mr. Lungu stated that the US$150 million bond issued by CEC Renewables accounted for a significant portion of the exchange-rate-related translation effects.
“The largest outstanding issuance is the US$150 million bond by CEC Renewables, which accounts for a significant portion of the translation effects arising from movements in the exchange rate,” he noted.
Mr. Lungu stressed that the Commission remains optimistic that more corporate bond issuers will enter the market during 2026, citing improving macroeconomic conditions as an enabling factor. “The macro-economic indicators have continued to improve steadily in Q2 and thus create an enabling environment for issuers to come to market,” Mr. Lungu said.
Meanwhile, government bond secondary market trading activity declined slightly during the quarter under review, with the nominal value of bonds traded falling by 7 percent quarter-on-quarter to K30.1 billion from K32.5 billion in Q1.
Mr. Lungu said in terms of market value, bonds traded fell by 9 percent to K31.5 billion from K34.4 billion recorded in the previous quarter.
He also reported growth in the Collective Investment Schemes (CIS) industry, with assets under management increasing by K139.6 million to K3.86 billion at the end of Q2 from K3.72 billion in March, representing a 3.75 percent quarterly increase.
Mr. Lungu noted that locally managed assets accounted for K3.36 billion, or 86.96 percent of total assets under management, while K503.7 million was invested in foreign CISs.
He said investor participation also increased, with the number of CIS investors rising by 3.54 percent to 1,534,109 from 1,481,661 in the previous quarter. “This growth reflects continued investor confidence and participation in the collective investment schemes by both new and existing investors,” he remarked.
However, the Lusaka Securities Exchange (LuSE) All Share Index (LASI) declined by 5.51 percent during the quarter, closing at 25,784.88 points compared with 27,289.81 points at the end of Q1.
The decline was driven by price falls in 12 of the 23 listed equities, with major counters including ZCCM-IH, CEC, ZSUG and Chilanga Cement recording significant losses. Market Capitalization subsequently fell to K334.12 billion from K341.87 billion in the first quarter.
Mr. Lungu said despite the overall decline, Airtel Networks Zambia Plc reached a billion-dollar market capitalization milestone in June 2026, which the SEC attributed largely to strong and consistent financial performance and investor confidence.
He observed that Zaffico was the biggest gainer during the quarter, rising by 80.6 percent, with the SEC attributing the increase to heightened investor participation following its rights issue and subsequent cautionary announcements.
Mr. Lungu added that the implied market capitalization, however, increased by 3.3 percent quarter-on-quarter, from approximately US$17.59 billion in Q1 to US$18.19 billion in Q2, remaining above the medium-term end-2027 target of US$13.9 billion
