KSJ is a business and financial analysis magazine now available as a supplement in the Bulletin and Record magazine (Zambia)

1. Economic and Financial Commentary Vol. 1, Issue 5 November 2015 Lusaka, Zambia
Yes I said it: Job losses in
the mines may not be such
a bad thing for Zambia
At a time when thousands of miners are threatened with job
losses, this is probably not the kind of headline that the
miners, the labour movement or the politicians would want
to hear.
Full story on page 4.
News on the street
Zimbabwe to ban electric water heaters to save
power: Zimbabwe is to ban the use of electric water
heaters and require all newly built properties to use solar
power, as it tries to tackle big power shortages. Existing
electric heaters - or geysers - will be phased out over the
next five years. This will save up to 400 megawatts of
electricity - equivalent to the output of an electrical
power plant.
IMF cuts global growth forecasts: The International
Monetary Fund cut its global growth forecasts, citing weak
commodity prices and a slowdown in China. The Fund,
whose annual meeting were held in Peru during thes
second week of October 2015, forecast that the world
economy would grow at 3.1 percent this year and by 3.6
percent in 2016. Both new forecasts are 0.2 percentage
point below its July forecast.
Chikwanda to cut budget deficit to 3.8% of GDP: On
9th October, 2015, Zambia's Finance Minister Alexander
Chikwanda presented a K53.1 billion budget for 2016. This
is 14% higher than the 2015 budget of K46.7 billion. The
budget proposes major cuts to non-wage expenditures to
help contain the budget deficit from an estimated 6.9% of
GDP in 2015 to 3.8% of GDP in 2016.
A trinity of deficits: Economics Association of Zambia
President Dr. Chrispin Mpuka has charged that the
country is currently facing a trinity of deficits. Speaking at
the Zambia Institute of Chartered Accountants organised
post-budget discussion on the impact of the national
budget on economic and social development on 9th October
2015, Dr Mpuka said “We have had a budget deficit, we have
had a current account deficit and finally, we have power
deficit. So, there are three deficits that hit us in one year”.
COVER STORY
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The Business Highway01
INSIDE THIS ISSUE
Word on the street: Demystifying Katondo Street
My Two Cents: Diversification through industrialisation
Chikwandanomics: The 2016 Budget at a glance
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2. Word From The Editor
I
t is with great pleasure that I present to you the
rebranded Katondo Street Journal – the first under the
partnership with the Bulletin and Record. We are
excited about this partnership which brings mutual benefits
to both institutions.
This edition comes at a time when the Minister of Finance
has just given his 2016 Budget Speech. We have therefore
dedicated a significant portion of this edition to discuss the
ramifications of the 2016 budget on the economy, and you.
We also look at the one of the buzzwords in the budget:
“Diversification, diversification and diversification”. Our
cover story is laced with the diversification theme.
Additionally, Herryman Moono discusses the diversification
story and how it relates to industrialisation and economic
growth.
Since the beginning of the third quarter, Zambia has been
plunged into its worst electricity crisis, with load shedding of
up to 8 hours per day for both households and industry.
Renowned economist Dr. Mushiba Nyamazana estimates
that load shedding will at the minimum cost 16% of Gross
Domestic Product. In this issue, we feature a budding
entrepreneur who is offering alternative energy solutions.
We look forward to your feedback. God bless.
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Who We Are
Katondo Street Journal (KSJ) is named after Katondo
Street, a thoroughfare in the Central Business
District of Lusaka.
What We Are About
At KSJ, we cover business and financial analytics in
Zambia. We focus on the people, innovations and
ideas behind Zambia's most dynamic and
entrepreneurial companies. We also analyse business
and financial data to inform decision making by
business leaders.
Our tag-line “The Business Highway” provides a fast-
paced route for businesses to showcase, network and
grow.
KSJ's isEconomic & Financial Commentary
distributed to subscribers by e-mail and is now
available on www.ksj.co.zm.
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Editor-in-Chief:
Aisha Nalishebo
Photography, Production & Distribution:
Humphrey Zimba
Analytics:
Herryman Moono
Special Projects:
Frazier Mulilo
Design:
Xel Creations
Publishing:
Radical Media House
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For advertising and other
enquiries please email:
info@ksj.co.zm
marketing@ksj.co.zm
Aisha Nalishebo
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Katondo Street Journal
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3. Cover Story
Why job losses in the mines may not be such a bad thing
A
t a time when thousands of miners are threatened
with job losses, it is probably a lynchable offence to
say that the job losses may not be such a bad thing
for the country. Before I face the guillotine and the wrath of
the Mines Minister Hon. Christopher Yaluma (below, who is
not smiling) and his counterpart at the Ministry of Labour
and Social Security, the unions and the miners themselves,
you need to hear me out.
Let us put the mining job losses into perspective. Of course,
job losses will always be an emotive issue, especially for the
individuals and families directly involved. Glencore
announced in September that it would cut over 4,000 of its
20,000 strong work force at Mopani in Kitwe. With an
output of about 110,000 metric tonnes of copper per
annum, Mopani contributes about 15% of total copper
output in the country. With an average household size of 5,
the loss of over 4,000 jobs will not only affect the miners but
16,000 other people who are their direct dependents.
“… Job losses will always be an emotive
issue, especially for the individuals and
families directly involved.”
However, the losses are inevitable due to lower copper
prices, the infamous load-shedding (which by the way is
making me write furiously before the laptop battery goes
dead as there has been no power for the last few hours) and
the still lingering problem of VAT refunds for exporting
firms.
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4. The commodity boom in the last decade brought about
increases in the number of jobs in the mining and related
industries. Additionally, a number of previously unskilled or
semi-skilled workers have now become skilled in these
occupations. So a loss of a job in the mining sector is
definitely not the end of the world.
According to the 2012 Labour Force Survey, nearly two-
thirds of the workers in the mining sector were plant and
machine operators (29%), craft and related trades workers
(17%) and elementary occupations (19%). The current boom
in residential and civil construction means that the skills
acquired in the mining sector can be transferred to the
construction and transport sectors. The Ministry of Local
Government and Housing projects a deficit of 3 million
housing units by 2030. Coupled with this, the Road
Development Agency (RDA) recently signed a contract
worth US$493 million with China Henan International
Cooperation Group for the construction and rehabilitation
of 406 km urban roads in the Copperbelt Province, a move
expected to create about 1,000 jobs. I bet you my last 50
Kwacha that foreigners will see these opportunities and take
advantage while we will be fighting with the mining houses
to reinstate the miners.
Our seasoned economic analysts need not only pay attention
to the price of copper at the London Metal Exchange (LME),
but also watch the copper inventories, especially in China,
the world's largest consumer of our chief export, at the
Shanghai Futures Exchange (SHFE). Falling copper
inventory is generally regarded as a positive signal. Copper
moving out of warehouses means that copper supply in the
market is lower when compared to the demand.
Conversely, copper inventory goes up in the warehouses
when supply exceeds demand. Glencore's announced 18-
month closure of some of its operations in Zambia and the
Democratic Republic of Congo (DRC) will obviously reduce
the output and subsequent supply of copper from Africa's
top two largest copper producers. Let's face it: the current
low global demand for copper means that most of our
copper is not being bought anyway or it is being bought and
stock-piled for future use. Evidence suggests that bonded
copper stocks have surged over the last few months.
The constrained supply may bring down the inventories in
the Chinese warehouses. This may just perhaps eventually
increase demand which will push up the price of copper. We
see this happening sooner rather than later. Before we
know it, the prices will be back to the levels we have been
used to lately and the miners will be back in their jobs –
that is if the miners with their newly acquired skills do not
decide to become self-employed working in residential and
civil construction or the transport sector or better yet, form
companies and become suppliers of goods and services to
their former employers.
Yes, I said it! Job losses in the mining sector may not be
such a bad thing. Now I am ready to be lynched
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The Business Highway 04
WORD PLAY
PERUSE TEMPORAL
What you think it means:
“to look over in a casual or cursory manner.”
What it actually means:
“to read (something), typically in a
thorough or careful way”
What you think it means:
“temporary; lasting for only a limited
period of time; not permanent..”
What it actually means:
“relating to worldly as opposed
to spiritual affairs; secular.”
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Katondo Street Journal

5. CHIKWANDANOMICS:
The 2016 Budget at a Glance
Increased Income:
Increased Payments:
Reduced Fiscal Decit:
In billions of Kwacha
Proposed budget
2016, ZMW 42.7
Approved budget
2015, ZMW 36.3
Proposed budget
2016, ZMW 53.1
Approved budget
2015, ZMW 46.7
Proposed budget
2016, ZMW 7.8
Approved budget
2015, ZMW 8.6
Spending
as % of GDP
Revenue as
% of GDP
Deficit as
% of GDP
Domestic
Borrowing
as % of GDP
25.8 20.4 3.8 1.2
2016 Fiscal Targets
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6. What most of the money will be spent on
Personal emoluments
ZMW19.1bn
9.3% of GDP
Non-financial assets
(including roads)
ZMW10.7bn
5.2% of GDP
Interest payments
ZMW7.2bn
(o/w Eurobonds
ZMW2.6bn)
3.5% of GDP
Where most of the money will come from
Income taxes
ZMW14.3bn
9.3% of GDP
Non-tax revenue
(including mineral royalty)
ZMW10.7bn
5.7% of GDP
Value Added Tax
ZMW10.7bn
4.8% of GDP
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Katondo Street Journal
The good:
US$50 million set aside
for sinking fund
The bad:
PAYE remains
unchanged
The really bad:
Customs duty rate on
cars increased to 30%
What it means What it means What it means
Government has set aside US$50
million for the newly established
sinking fund for servicing the three
Eurobonds.
No change has been made to the exempt
threshold. It remains at ZMW3 000 per
month for the 2016 fiscal year.
It is proposed to increase the customs
duty rate to 30% on all motor vehicles
with the exception of buses, truck,
ambulances, prison vans and hearses.
The government has made one giant
step with regard to prudent debt
management by setting aside some
money that will be used to pay off the
Eurobond debt when it becomes due in
2022, 2024, 2025, 2026 and 2027.
Given the current economic challenges,
we did not anticipate any relief as far as
t h i s t a x t y p e i s c o n c e r n e d a s
government needs every ngwee it can
get to finance the budget. The rising
cost of living means that the real
incomes have been eroded over the last
year.
Aside from grappling with the effects of
the depreciating Kwacha, we will have
to contend with increased customs duty
on motor vehicles. We expect a further
reduction in the importation of motor
vehicles and subsequently reduced
customs duty.

7. My Two Cents...
Diversification through Industrialisation:
Following the recent economic challenges that has faced the
country, the issue of diversification has come back on the
national agenda. In his Budget speech address to the nation
on 9th October 2015, Finance Minister Hon. Alexander
Chikwanda outlined several measures meant to accelerate
the diversification of the economy.
The recognition of the need to diversify Zambia's economy
from its over-dependence on a single industry – Copper
mining - is not new, but has a long history starting with the
UNIP government in the 1970s. For many years since the
drastic fall in Copper prices and the rise in oil prices in the
1970s, the diversification 'song' has been sung by successive
governments – mostly in periods of low copper prices which
lead to reduced forex and subsequent currency depreciation.
Expectedly, the reduction in Copper prices in 2015 which has
led to a massive depreciation of the currency has reignited
the 'diversification song'. Indeed, the current government, as
with successive governments has proposals and ideas for
diversifying the economy to reduce dependency on Copper,
generate new forms of wealth and create new forms of
employment.
Diversification will, however, require a new policy area that
must be enhanced. That policy area is industrialisation.
Diversification cannot be sustained, nor is it feasible,
without growth in industrial capabilities of Zambia.
Zambia's diversification efforts can only be successful if
augmented by industrial development through the
enhancement of small to medium scale manufacturing of
consumption commodities that are currently being
imported.
Does Zambia have reasons to be optimistic about her
industrialisation path? According to a recent study by the
International Growth Centre Zambia, yes. The study finds
positive trends in terms of contribution to GDP growth,
employment, investment and export performance. In
terms of employment, for example, job creation in the
manufacturing sector has increased fourfold from 55,600
people in 2005 to 216,700 people in 2012.
The study particularly noted that Zambia's Non-
Traditional Exports performed very well: these are fast-
growing, directed at regional markets, and there is a small
but growing share of value-added products. Apart from
copper semi-fabricates, these consist of cement, animal
fodder, milling products, essential oils, iron and steel
products, among others. The number of small and medium
firms involved in exporting to the region is also growing.
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The Future of Zambian Growth
By Herryman Moono
The Business Highway07
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8. The low-hanging fruits for Zambia's industrialisation can be
found in the agro-processing sector. Food and beverages is
the largest component of household consumption in Zambia,
and in most of the region. The rise of the urban middle class
is driving consumption of processed foods and beverages.
Zambia's agricultural potential means that there are very
substantial opportunities for it to meet regional demand if
this potential is matched with investments in agro-
processing.
On the import side, the largest contributors to Zambia's food
imports are fish, dairy, bakery products, prepared fruits and
vegetables, and miscellaneous edible preparations. Who is
seizing these market opportunities? Sadly, mainly South
African producers and, increasingly, Asia and Latin
American ones.
Zambia is receiving increasing levels of foreign and domestic
investment in agricultural production of such products as
soybean, wheat, poultry and sugar. And, Zambia is already a
competitive exporter of vegetables and milling products.
Domestic urban and rural demand for processed foods
nevertheless is increasingly structured around supermarket
retail chains. This requires a tailored strategy which
understands supermarkets' procurement strategies and
design, together with buyers and suppliers, an effective
supplier upgrading programme. This is important both for
competing with imports and penetrating regional export
markets.
Zambia's low-cost production basis for cane sugar and
soybean makes downstream processors potentially
competitive in the domestic and regional markets for sugar
confectionery and other sugar-based products, animal
fodder and broiler meat. The pricing strategies of upstream
firms involved in sugar and animal feed production however
have hampered the competitiveness of local downstream
industries. Addressing competition concerns in the
upstream stages of the value chain is therefore a priority for
Zambia's agro-processing industrial strategy. Moreover,
reducing transport costs to regional urban centres could
turn Zambia into the regional supply hub for animal fodder,
meeting the burgeoning inputs demand from the poultry
industry across the region.
The Zambian government's industrial strategy has
prioritised engineering products. The study highlights that
the mining sector can open up a sizeable market for Zambian
manufacturers. Currently, local sourcing of equipment and
other mining inputs is low. However, the DRC offers
Zambian suppliers an opportunity to reach larger economies
of scale for activities which have been unviable for the
domestic market (for example re-conditioning of
equipment). Already, re-exports of mining equipment to the
DRC figure among Zambia's top export products. The other
key regional partner in this regard is South Africa, which is
the hub for mining-related capital equipment and services
to the region. In designing its local content policy, Zambia
should consider leveraging cooperation with the region,
and in particular, with South Africa, tapping into its
capabilities and competences, and the DRC, which could
turn Zambia into a sub-regional hub for higher value added
activities. The region should feature in a broader strategy
for the engineering sector which aims, among others, at
increasing sub-contracting opportunities and relaxing
skills and capital constraints.
In conclusion, to advance the industrialisation
agenda, three key issues deserve attention:
 Linkage development strategies are critical to facilitate
entry and competitiveness into the mining and
supermarkets value chains. Government needs to
tackle factors such as access to credit and a national
quality assurance system, and work with buyers and
suppliers to develop effective supplier development
programmes.
 The region has become the largest destination market
for Zambia's non-traditional exports. Free Trade Areas
under COMESA and SADC are important, but it is
time to focus on regional industrial cooperation
programmes that strengthen Zambia's position in the
regional market.
 Low levels of competition undermine the
competitiveness of downstream activities. There is
evidence that this is a problem in the cement, sugar,
and poultry industries. Industrial policy needs to
ensure the competitive supply of raw materials and
intermediate inputs to downstream and diversified
activities.
Zambia's industrialisation is increasingly gaining
momentum, on the back of renewed policy efforts and
investment from domestic, regional and global players. In
this context, it is particularly important for Zambia's
industrial strategy to focus on implementation and develop
effective upgrading programmes, adopt a regional
perspective, and deal with difficult competition issues.
Herryman is the Secretary General of the Economics
Association of Zambia
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9. Entrepreneur of the Month
Rodney Hammad Chibeka
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Rodney is a budding young entrepreneur behind the Power
Buddy brand of plug-and-go electrical inverters and solar
panels. A web designer by training, Rodney has seen the
opportunity brought about by the country's worst energy
crisis and ventured into providing alternative power
solutions. If you do not like the noise and fumes from
electrical generators, Power Buddy is your solution.
Katondo Street Journal: When did you set up Power
Buddy Zambia Limited?
Rodney Hammad Chibeka: The Company was set up
early 2014 in Chongwe.
KSJ: What exactly does your company do?
RHC: Power Buddy Zambia are energy consultants and
solution providers. By assessing companies and households'
power requirements, we offer solutions to bridge power
outages, based on solar, wind and hybrid in combination
with battery banks. We specialise in off-grid solutions,
whereby ZESCO connections are not present.
KSJ: What motivated you to get into alternative power
sources?
RHC: Power Buddy went into alternative power because of
the challenges for mostly remote and rural areas where
there is no power grid. This got considerably strengthened
by the current power deficit, which will be with us for a
considerable time to come.
KSJ: Are your products locally manufactured or they are
imported? If imported, which country are you importing
from?
RHC: We assemble all our products locally in our
workshop in Chongwe. We do import certain parts - made
to our specifications - from Europe, India and China. For
instance, our batteries come from India, our
charger/inverters come from The Netherlands, while all
solar panels are now manufactured in China.
KSJ: As you mentioned earlier, we also think that this
energy crisis will be with us for a long time and as a country
we will never be the same as we are going to have to reduce
our dependence on hydropower. The Minister of Finance
recently announced measures in the 2016 Budget to
encourage entrepreneurs like you who provide alternative
power solutions. What do you think about the measures?
RHC: The measures as announced in the 2016 budget are
well-intentioned but I am sorry to say are very time-
consuming and are focussed on foreign investors. It will
take at least two years before the first projects will help
mitigate the current issues. This is quite unfortunate, as
there are many short-term opportunities to alleviate the
problems; it is a pity that the government only looks over
the borders while there is substantial expertise available

10. among Zambians. Power Buddy has designed a 1 MW solar
plant which can be installed and connected to the ZESCO
grid in less than 3 months!
KSJ: Really?
RHC: Yes, we have. A dozen or even hundreds of such plants
will make a real difference, and this can be put in place
before the year end. So far the Ministry has not responded to
our proposals. Every day of waiting means another outage...
KSJ: Interesting... Your work is impacting the lives of many
people who do not like gen sets. Where do you see yourselves
five years from now? Ever considered setting up a
manufacturing plant?
RHC: Power Buddy will work tirelessly to
alleviate power problems of companies and
ordinary citizens all over the country. Five
years from now, the power deficit should be
a thing of the past - but without decisive
action now it might take much longer.
Therefore, Power Buddy recommends that
Zambians should take the matter into their
own hands and go off-grid. Our workshop
in Chongwe is growing every day, and there
are plans to build our own plant for the
manufacture of wind turbines, solar
panels, charge controllers and inverters.
We are looking into crowd-sourcing in
order to raise the funding required. Maybe
KSJ can help here?
KSJ: Fat chance, my brother. We are a small start-up
[chuckle]. Where are you found? How do people who want
your products get in touch with you?
RHC: Power Buddy has a workshop in Chongwe, where we
assemble our products and have a display of systems,
including wind turbines and hybrids. For further
enquiries, contact either Rodney or Martin:
Rodney 0953747117 & 0979020024 (Lusaka)
Martin 0955770862 & 0967770860 (Chongwe)
Email: power.buddy.zambia@gmail.com
KSJ: Thanks a lot for talking to us. This is much
appreciated.
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The Business Highway 10
FACTS & STATS:
Imports of electric generating sets and rotary converters (US$'000)
Electric gen-sets are mostly imported from China, India and South Africa. There was a general increase in imports of gensets
from US$57 million in 2013 to US$99 million in 2014. Following the electricity crisis which started mid-2015, the demand for
gensets has increased even further.
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Katondo Street Journal

11. Demystifying Katondo Street
Word on the Street:
“You look familiar”, said John Banda (not his real name),
when I met him on Katondo Street. He looked like someone I
had met before, but I could not place him.
Through a third party, I had arranged to meet John to give
me the lowdown on the history of Katondo Street. We had
arranged to meet in front of the Lusaka City Council library.
No exact time was agreed upon because, as he said, he was
not exactly sure what my motive was. He wasn't there when I
arrived, armed with just pen and paper. I called him on his
mobile phone and he said he was doing some transactions at
Farmers' House, so he would meet me in the next 15
minutes. As I waited for him, I couldn't help but notice the
predatory alertness of the men idling around Katondo
Street. Being a newbie, the suspicious stares made me
uneasy but I was determined to wait it out and get my
interview and demystify perhaps the most infamous street
in Zambia, known for shady fast dealings.
Some old men who knew my contact came and asked me
what exactly I wanted and they even tried to help me by
divulging some answers. However each one left abruptly
during their story-telling and stood at a distance. If I hadn't
had my annual shower that morning, I would have thought
they couldn't stand my body odour!
After ten minutes, John came – he was five minutes early.
John is a seasoned second generation veteran trader who has
been on Katondo Street since 1969. His family was originally
from Kenya. After the usual exchange of pleasantries, I
asked him why everyone looked at me suspiciously. He told
me they were trying to figure me out,
whether I was buying or selling, or
whether I was a government 'spy'.
History of Katondo Street
Trading on Katondo Street actually
started in the middle of Cairo Road, the
main street in the Central Business
District of the City of Lusaka, as a curios
market.
“The curios business started about the
time the trees currently lining the
middle of Cairo Road were just knee-
high” John quipped as he stooped and
put his right hand on his knee to depict
the height of the trees. The trees lining
Cairo Road are now over 10 metres tall.
Curios were imported from East Africa, mostly from
Kenya. Tourists would flock to the middle of Cairo Road
and pay for the curios in foreign currencies. The curio
traders amassed enough foreign currencies which they
started selling to the Indian traders who needed it to
finance their imports. Due to foreign exchange restrictions
at the time, most of the traders slowly abandoned the
curios business and went into the more lucrative foreign
currency exchange market. This was the birth of the
foreign currency 'black market', as it came to be known. As
they were trading illegally, the traders were 'chased' from
Cairo Road. So they moved to Lusaka Hotel. Due to the
continued 'battles' with the authorities, they later moved to
Kulima Tower, Stanley Bar and presently, they now occupy
the whole stretch of Katondo Street. The foreign currency
business thrived for decades until the liberalisation of the
foreign currency market around 1994. This effectively got
most of the traders out of business. Due to their resilience,
the traders evolved and began trading in other
commodities such as cars, phones, cameras and laptops.
“You said you have been on Katondo Street since 1969.
Why that long?” I asked, as some of the people I talked to
earlier came back and were trying to listen to our
conversation.
John explained that Katondo Street can be likened to a
commodities exchange market. Most of the traders do not
do their actual transactions from Katondo Street, it just
serves as a meeting point for transactions and for business
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networking. Over the years, he has built a large network of
clients who, when they want to do business with him, would
come to the street. If he does not come to Katondo Street, he
would lose out on a lot of business and contacts. That is why
he has been there that long, and feels part of the street. He
has no kind words for the city authorities who put up a street
sign that says “Katondo Road” instead of Katondo Street.
If you want to sell your laptop, for example, you approach
one of the traders from Katondo Street who will find buyers
for you. If, on the other hand, you want to buy something,
anything, you would go to Katondo Street. While the
relationships built with the traders are based on trust,
trickery still exists especially with the newcomers. The older
folk like John dare not risk losing their hard-earned
reputation and business contacts. As it is from Katondo
Street that they have managed to finance their children's
education, feed their families and diversify into other
businesses. Most of the traders lining the street have
businesses elsewhere: they trade in motor vehicle spare
parts, buying and selling of maize during the maize
marketing season, etc. With no traders association, everyone
trades individually.
“Now I remember you”, John said, with a twinkle in his eyes,
after I finally jolted his memory by asking about a man who
used to trade on Katondo Street some time back. “You came
here once to play pool with your Ethiopian friend. About 10
years ago”. I could not believe how sharp the man's memory
was. I last went to Katondo Street in 2005 or 2006, and, true
to his word, I did play pool for a couple of hours, with a friend
of mine who is Zambian but is always mistaken for an
Ethiopian. To vividly remember a single incident that
happened ten years ago is an amazing feat, a desirable trait
for traders on Katondo Street.
Parallels with Wall Street
The history of Katondo Street has characteristics that
mirror that of Wall Street in New York, USA when 24 men
met under a buttonwood tree in 1792 and banded together
through the 'Buttonwood Agreement' to control the
securities trading. These men in New York had founded
what was to become the New York Stock Exchange in 1817
which is located at 11 Wall Street in Lower Manhattan,
New York. The New York Stock Exchange has become the
world's largest stock exchange by market capitalization
with average daily trading approximately US$169 billion
in 2013.
Unlike Wall Street, Katondo Street has neither cartels nor
traders association – everyone trades individually. It
remains an informal commodities exchange market. Had
the traders on Katondo Street been as organized as those
24 men on Wall Street, things may have been different by
now. We would perhaps have had a thriving and private-
sector-led Katondo Commodities Exchange, way before the
Lusaka Stock Exchange came into existence in 1994, as
well as banks and other financial intermediaries formed by
the resilient street-smart and business savvy individuals
who line Katondo Street.
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