By KENNEDY MUPESENI –
THE Government has urged companies listed on the local stock market to practice good governance principles for the country to continue attracting the much-needed investment.
Commerce, Trade and Industry Deputy Minister Raymond Mpundu said Zambia was part of the global village, hence for institutions like the Lusaka Stock Exchange (LuSE) to continue espousing good corporate governance to attract more investment.
Mr Mpundu said during the LuSE Eighth Corporate Governance Awards ceremony at Lusaka’s Pamodzi Hotel on Thursday night that players in the stock market were required to adhere to good governance practices for the economy to grow.
“For us to improve our economy, there is need for players in the stock market to continue adhering to good governance practices to attract more investments,” Mr Mpundu said.
The exchange introduced LuSE Corporate Governance Awards in 2007, with the purpose of publicly recognising and acclaiming listed companies that have in the preceding year demonstrated exemplary adherence to principles of the LuSE corporate governance code.
The awards saw Zanaco Plc scoping the overall 2014 LuSE Corporate Governance Code, with Zambia Sugar Plc and Copperbelt Energy (CEC) scoping first and second runner’s-up awards, respectively.
Other categories were best leadership award taken by Lafarge Zambia Plc chief executive officer Emmanuel Rigaux for his exceptional leadership and direction of Lafarge.
The overall sustainability award went to CEC for its exceptional adherence to the corporate social responsibility code with Zanaco and Standard Chartered Bank (Z) Plc being first and second runner’s-up in that order.
Zambia Sugar scooped corporate governance green overall award with CEC and Zambeef Products Plc as first and second runner’s-up.
Zambia Sugar further got the best dividend paying-stock award while Real Estate Investments Plc and Bata Shoe Company won first and second runners-up accolades.
LuSE Board chairperson Alfred Lungu said the significance of the awards was rooted in the corporate governance as a vehicle for achieving the business conditions necessary to nurture a robust and vibrant capital market.
“This is providing our listed companies much-needed incentives to pursue standards of excellence and success that extend beyond the basic motivation of achieving healthy bottom lines,” Mr Lungu said.
LuSE is keen to work closely with the Government to increase the current number of listed companies on the local stock market.