By JUDITH NAMUTOWE –

IT is imperative that the Zambian economy diversifies financial services beyond traditional banking and develop a robust capital market, Secretary to the Treasury Fredson Yamba has said.
He has called on financial and capital market participants to accelerate diversification in the sector to reach a much more financially inclusive, strong and modern economy characterised by wider participation.
Mr Yamba said it was imperative that the Zambian economy diversified financial services beyond traditional banking and develop larger, stronger and more robust capital markets.
He said this at a one-day Bond and Derivative Exchange (BaDEx) media breakfast meeting whose theme was “New markets and financial innovation, the case of bond and BaDEx.
The meeting was aimed at bringing various players from capital markets, financial markets, private sector, academic institution and other stakeholders together.
Mr Yamba said that the challenge in building capital markets was lack of skills and experience within the market.
He encouraged the Small and Medium Entrepreneurs (SMEs), large corporate, retail customers, commercial banks, pension fund as well as youths to participate in the capital market.
Mr Yamba said without the support of the business community and all stakeholders’ efforts to develop capital markets would be fruitless.
“I wish to particularly encourage banks and pension funds to actively participate in capital market, adding that the role of pension funds, banks and insurance companies as investors was crucial,” he said.
Banks could extend hedging tools available in capital markets to their customers.
Instruments such as currency futures and forward exchange contracts were available within the Zambian capital markets.
At the same occasion, Securities and Exchange Commission (SEC) chief executive officer Philip Chitalu said the commission was keen to provide the development of new markets and financial innovative in the sector thereby effecting diversification and deepening of financial sector.