press releases
U.S. Ambassador Visits Lusaka Stock Exchange
LusakaMay 11, 2006
United States Ambassador to Zambia Carmen Martinez on Thursday, May 11 toured the Lusaka Stock Exchange (LuSE). Speaking at the event, Ambassador Martinez commended the LuSE for recently introducing new rules to govern trading of debt securities that would benefit Zambia’s economy. “Now that the government can borrow from the public at less than 10 percent, it will be great news for Zambia's economy if capital-starved enterprises can do likewise. If the Lusaka Stock Exchange can build a transparent and reliable market for private debt transactions, then the wider market will begin to work better for everyone,” Ambassador Martinez said.
The LuSE finalized new listing rules for debt securities at the end of 2005. The new rules require applications, disclosure of documents, assessment of fees and other obligations, which include publication of financial statements and notification of any default.
Ambassador Martinez also said that a market economy can turn the tide of poverty if the government stops corruption and regulates the market fairly. She noted that the U.S. government is supporting practical innovations that will make Zambia's financial markets work for more people, such as the recently launched Lilayi Housing Project. On the basis of financing and credit guarantees from the U.S. and other partners, some banks in Lusaka have been able to make home mortgages a commercial proposition for the first time in Zambia. "Making home ownership possible for more people," Ambassador Martinez said, "is one way to help make poverty history."
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