Zambia’s Capital Markets Master Plan (CMMP) sets out a strategic vision to strengthen and diversify the country’s financial markets. A key focus of the plan is to promote traditional capital market instruments such as equities (shares) and corporate bonds, which are vital for supporting private sector growth. Equities allow investors to own part of a company and benefit from its success, while corporate bonds offer businesses an alternative source of long-term financing. Both instruments are essential for broadening access to capital and improving financial inclusion.
In addition, the plan highlights the importance of Collective Investment Schemes (CIS), which involve pooling funds from various investors to invest in a range of assets like shares, bonds, and cash. Though still in the early stages in Zambia, CIS offer a safer, diversified way for ordinary citizens to invest with the support of professional fund managers. This approach helps reduce individual risk while encouraging more participation in the financial markets.
Furthermore, the plan identifies opportunities to grow private equity and private debt markets. These funding options target businesses not yet ready to go public but still in need of capital to grow. By improving access to these private market instruments, the CMMP supports the expansion of small and medium enterprises (SMEs) and enhances private sector development.
Zambia is on a trajectory to introduce new products like exchange-traded funds (ETFs), retail bonds, and real estate investment trusts (REITs). These instruments are designed to make investing more accessible for retail investors, support government fundraising, and channel capital into infrastructure and real estate development, aligning with the goals of the Eighth National Development Plan (8NDP). Additionally, Zambia plans to develop a securitisation and mortgage refinancing framework to transform financial assets such as mortgages and loans into capital market instruments, thereby enhancing liquidity for lenders and creating long-term investment opportunities for institutions like pension funds.
Lastly, the CMMP promotes the launch of green bonds, which are debt instruments specifically used to fund environmentally sustainable projects. These bonds will allow Zambia to attract climate-conscious investment and finance projects that address the impacts of climate change. Green bonds are particularly aligned with Zambia’s long-term development goals, including those outlined in Vision 2030.
In summary, the CMMP aims to build a well-rounded, inclusive, and innovative capital market in Zambia. Through developing both traditional and new financial products, the plan supports investment, economic diversification, and sustainable growth across the country
The Securities and Exchange Commission (SEC) proudly introduced the Capital Markets Regulatory Sandbox Framework, designed to support and foster innovation in the financial technology (FinTech) sector and beyond. This framework aims to facilitate the safe introduction and development of new financial products and services while ensuring investor protection and market stability.
A regulatory sandbox is a controlled environment established by a regulator that allows FinTech startups and other innovators to test their products and services under real market conditions but within a supervised and regulated framework. This approach enables experimentation and refinement of innovations while managing potential risks to the financial system.
The sandbox is open to all firms involved in FinTech, from startups to established companies, both regulated and unregulated. To qualify, firms must demonstrate an advanced technological solution that is ready for testing and aims to enhance the capital markets in Zambia by promoting growth, efficiency, competition, and improved risk management.
Participants in the sandbox can test their innovations in a controlled setting with defined parameters over a specified period. This framework ensures that innovations are evaluated for their impact on consumers and the financial ecosystem while minimizing risks.
To apply, submit an application form with the following supporting documents:
Eligible applicants include:
Applications are assessed based on:
The SEC aims to provide a decision within thirty (30) working days of receiving a complete application.
Participants must present an exit plan. Based on the outcomes of the testing phase, the SEC will decide whether the innovation can proceed to a full market launch.
Applications are accepted year-round. However, due to resource constraints, the SEC may adopt a cohort approach with deadlines communicated for each cohort.
The SEC collaborates with strategic partners, including the United Nations Capital Development Fund (UNCDF), to support and enhance the FinTech ecosystem in Zambia.
For further details or to start your application, please contact the SEC Sandbox Team:
