LUSE welcomes directive to register state owned parastatals

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President Edgar Lungu listens to Lizzen Moono Monitoring and Evaluation specialist at the Ministry of Fisheries and livestock during the tour of stands at the 92nd Agriculture and Commercial Show of Zambia
President Edgar Lungu listens to Lizzen Moono Monitoring and Evaluation specialist at the Ministry of Fisheries and livestock during the tour of stands at the 92nd Agriculture and Commercial Show of Zambia

The Lusaka Stock Exchange (LUSE) has welcomed President Edgar Lungu’s directive to have state owned parastatals listed on the Zambian market.

LUSE Head of Business Development Phil Daka said the Presidential pronouncement is welcome because it can easily be turned into a success.

Mr Daka told ZANIS in an interview today that listing of state owned companies will help raise funds for their operations both locally and internationally, and help yield their investment locally.

The LUSE Head of Business Development noted that some state owned parastatals are ready for listing on the capital market and that LUSE is working closely with the listed entities, in order for them to be educated on more profitable ways of raising capital.

Mr. Daka however revealed that LUSE has constituted a committee to clean up some of the state owned entities that are not performing well.

“The Committee constituted will look into insuring that we prepare these companies, to run them through the listing processes the benefits and obligations they need to meet when they sit on this market” Mr. Daka stated

“Ours is to help these companies recapitalize and raise capital through us” he said.

And Mr Daka said that the move is very important and significant in unlocking value and recapitalizing companies, adding that it will help relieve pressure on government in term of giving them operational capital.

33 parastatals that are currently owned by government are in the process of being listed with the Lusaka Stock Exchange in the next five years as directed by the President.

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8 COMMENTS

  1. Financial and legal people in state-owned companies know the listing rules and do not need to be educated by LuSE officials.

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  2. WE NEED TO LIST THE ORGANIZATION CALLED UPND HEADED BY A COWBOY AND DEPUTIZED BY FAT ALBERT. THE PARTY HAS SUFFERED ALOT OF ELECTION LOSSES AND 2021 WILL BE ANOTHER LOSS HENCE THE NEED TO BE LISTED AT LUSE

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  3. Actually listing the parastatals companies is one way if ensuring they up their act it will require adjusting the shareholding structure, improving sources for financing and maybe just maybe the CEO will not have to be a party carder

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  4. Am an economic student. And I can’t figure out the government objectives for State owned enterprises matching on a platform for public limited companies or PLC’s. As more shares are bought divorce between ownership and control will come into play. Already by listing government can’t decide on who will manage the business it’s now upto to the board which has to consists of the shareholders.
    The other struggle I have is, how will their stock pricing work? There is possibility of manipulation in order to raise more funds.

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  5. Surely by now basic economics will educate us to know that before you list the Exchange Regulator will require you fulfil certain benchmarks…

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