Economist Kelvin Chisanga says Zambia’s newly introduced bond market rules are designed to safeguard economic stability and protect the country from sudden financial shocks.
Mr. Chisanga explained that under the new framework, foreign investors are no longer allowed to withdraw their investments abruptly. Instead, they are required to sell their bonds on the local market, receive payment in kwacha, and then convert the funds through commercial banks.
He said the measures help to prevent sudden capital outflows that could destabilise the economy, although he noted that large withdrawals may still exert pressure on the exchange rate.
Mr. Chisanga added that the rules are also intended to encourage investors to keep their funds in the country for longer periods by reinvesting, a move he said would reduce market volatility and help build confidence in Zambia’s bond market.
