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By NANCY MWAPE
LuSE abandons plans to link itself to JSE
THE Lusaka Stock Exchange has abandoned an ambitious plan to link with Johannesburg Stock Exchange (JSE)- Securities and Exchange due to cost considerations.
Johannesburg Stock Exchange – Africa’s Largest
Last year, LuSE indicated that it was scouting for US$1.1 million to link its operations with JSE Securities and Exchange by this year.
LuSE had also said the World Bank’s International Finance Corporation was studying LuSE’s plan and would fund the project.
But responding to a press query, LuSE general manager, Beatrice Nkhanza, said plans to link with JSE had been abandoned for various reasons among them the cost considerations.
“Plans to link LuSE to JSE have been abandoned for various reasons.
LuSE therefore is going it alone…by sourcing and financing of the system, just like Nairobi, Dar-es Salaam and Botswana,” she said.
Mrs Nkhanza however pointed out that LuSE was in the process of sourcing and installing an automated system and was currently consulting.
She stated the automated system would be operational sometime next year.
Mrs Nkhanza said in the region, only Namibia Stock Exchange was linked to the JSE Securities and
The aim of linking with JSE Securities and Exchange was to integrate network of national securities market in the region.
In 1997 at Livingstone’s Sun hotel, a committee of Southern Africa Development Community Stock Exchange was formed to integrate stock exchanges, make markets liquid and improve their operations.
By last year September, member States that included South Africa, Botswana, Namibia, Malawi, Mozambique and Zambia had harmonised listing requirements.
Getting LuSE linked with JSE securities and Exchange was expected to create a central point for inflow of foreign portfolio investment and enhance LuSE’s exposure to investors.
Other expected benefits included improved liquidity across multiple markets and LuSE being able to be seen on the London Stock Exchange via JSE Securities and Exchange.
Zambia Daily Mail