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SMEs not ready for listing on LuSE, says Nkanza

SMEs not ready for listing on LuSE, says Nkanza
By Mutale Kapekele
Thu 01 Apr. 2010, 04:00 CAT

LUSAKA Stock Exchange (LuSE) general manager Beatrice Nkanza has said Small and Medium Enterprises (SMEs) are not yet ready to be listed on the stock exchange.

Addressing the press yesterday, Nkanza said SMEs had corporate governance issues that needed to be addressed before they could be considered for listing on the stock exchange.

“SMEs command 90 per cent of commerce in Zambia and without them, we would be leaving a big gap in the business world,” Nkanza said.

“As LuSE, we have for the past two years sensitised them on their responsibility. For them corporate governance is a big challenge. It will be a while before they become eligible. They should first have structures, clear separation of roles for professionalism’s sake. They still have a long way to go to guarantee sustainability.”

She said the biggest challenge SMEs had was keeping financial records.

“They need to put things in place as they grow,” Nkanza said.

“We are hoping to see cluster of financially in order companies so that they can attract investors. SMEs are small in capital, human resources, focus and marketing.

She said the securities Act had been reviewed to embrace SMEs on the stock market and that all that was remaining was for parliament to enact it into law.

And Nkanza has urged companies that are listed on LuSE to observe high standards of corporate governance.

“This is not limited to big companies but all organisations. Listed companies should be responsible to itself and other stakeholders because they have wider ownership,” she said.

She announced that LuSE will today recognise one of the listed companies with a good corporate governance award.

Currently, 20 companies are listed on LuSE.

Labels: BEATRICE NKANZA, LUSE, SMEs

posted by MrK @ 2:58 PM