Formulate capital market policy – Tembo
By ESTHER MSETEKA, Mazabuka
LUSAKA Stock Exchange (LuSE) chief executive officer Brian Tembo says there is need for Government to formulate a capital market policy that links foreign direct investment to listing.
Mr Tembo said the country needs to find ways which can help create linkages between companies that invest in the country.
He said in an interview recently, that listing enables companies to be perceived as good social corporate citizens, transparent and therefore, effectively contributing to economic growth.
“I think what is missing is policy framework that indicates in clear terms what we want to achieve as a country, however, Government has been talking about a policy for the capital markets,” Mr Tembo said.
He further said that listing should not be a struggle for firms especially, when their parent companies are quoted on the global markets.
Mr Tembo said a registered company adds value to its operations and shareholders.
“Listing helps curb economic [ills such as transfer pricing and tax evasion] because when you list you live your life in a glass house open to public scrutiny.
“There are actually, rules that provide a framework for continuing obligation. So you have to comply as a listed company to these rules and this is why Government has given tax incentives to those companies that are listed because, they are living a different life from the unlisted companies,” he said.