Abstract

This study investigates the factors constraining the growth of capital markets in Zambia, focusing specifically on the Lusaka Stock Exchange (LUSE) with its objectives 1. To investigate the specific factors contributing to the limited participation from retail investors in the securities exchange. 2. To assess the influence of macroeconomic factors, such as government policies, economic stability, and currency fluctuations, on the growth of securities exchange and broader capital markets in Zambia. 3. To formulate strategies for improving the operations of the Lusaka Stock Exchange markets. The study utilised a quantitative method, a descriptive design, and using both primary and secondary data. The primary data was collected using questionnaires with a sample size of 100 and got a 100% response rate. Through regression analysis of quantitative data, the study identifies key inhibiting factors and recommends strategic initiatives. The study findings revealed investors in education programs, technological innovation, and sustainable development initiatives in fostering market resilience and inclusivity contribute to the growth of capital market. The study proposed a strategic framework encompassing initiatives such as integrating ESG criteria, promoting fintech solutions, and leveraging digital platforms for disseminating educational content.

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