The Zambia capital market recorded a strong performance in Q1 of 2026, with the market capitalization increasing from K330 billion in Q4 of 2025 to K341.9 billion in Q1 of 2026, and the LuSE All Share Index ( LASI) increased by 5.3% to close at 27.3 thousand points.
Speaking during the Securities and Exchange Commission quarter 1 of 2026 media briefing attended by Zambian Business Times—ZBT SEC Director of Enforcement and Legal Services Diana Sichone noted that the strong performance in the capital market was supported by improved macroeconomic conditions.
“The strong performance in Q1 of 2026 recorded in Zambia’s capital markets was supported by improving macroeconomic conditions, growing investor confidence, and continued implementation of strategic market development initiatives by the Commission,” said Sichone.
Other key factors attributed to the boom include a reduction in inflation, appreciation of the Kwacha, and a reduced monetary policy rate, thereby creating a stable and attractive investment environment.
“During Q1 2026, inflation reduced significantly to 7.1% from 11.2% at the end of Q4 2025. The Kwacha appreciated by over 13% against the US Dollar, and the Bank of Zambia reduced the monetary policy rate to 13.5%, and these developments created a more stable and attractive investment environment,” said Sichone.
Sichone further mentioned that under the same period under review, the GDP market ratio, including Shoprite, was recorded at 51.6%, and the domestic ratio (excluding Shoprite) was 22.9%, from 20.5% recorded in Q4 2025, showing positive progress towards the CMMP targeted market cap to GDP ratio of 30% by 2027.
Article by Justine Phiri
