SEC Emphasizes Need To Build Resilience In Investors As Financial Fraud Continues to Rise

Securities and Exchange Commission (SEC) has emphasized the need to build resilience in the investors as they venture into new areas of sustainable finance and digital assets.

Speaking during the launch of the 2024 World Investor Week, Commission Board Chairperson, Ruth Mugala said with the world rapidly moving towards digital finance, the challenges of crypto assets, and the pressing need for sustainable finance, it is critical to equip investors with the knowledge and tools to navigate these developments safely and wisely.

Mrs. Mugala, who was represented by SEC Commissioner, Dr. Leornard Kalinde, stated that the Commission will continue to encourage investors to adopt wise investment habits, especially in an era where financial fraud and scams are evolving at an alarming rate.

“Our financial markets, like others around the globe, have faced significant challenges in recent years, such as those from the geopolitical tensions such as the Russia-Ukraine war as well as the physical and economic risks emanating from climate change.”

“These events have underscored the importance pf investor resilience, the ability to stay focused on long-term market turbulences. This resilience, coupled with sound decision-making and emotional strength, is what we aim to cultivate through our ongoing educational campaigns,” she explained.

She noted that this year’s theme: “Be a Smart Investor: Learn more about digital finance, sustainable finance, and avoid fraud and scams,” resonates deeply with the ongoing transformation in the country’s financial sector.

And Commission Chief Executive Officer, Philip Chitalu stressed the need for investors to embrace digital finance as they talk about savings and investment programmes.

Mr. Chitalu also encouraged investors to embrace Green Financing and Climate Capital as a response to global environmental challenges.

“We have had a drought and without sustainability issues being put into the way we do our financial affairs, this would be a huge risk.”

“So, the issues of green financing and of course climate capital should be on our lips,” Mr. Chitalu said.

Meanwhile, Capital Markets Association of Zambia President, Joseph Mazila, said commemoration of the World Investor Week is a testament of its shared commitment with the SEC towards ensuring that the country remains competitive in attracting both local and foreign investments.

“As we take immense pride in the partnership we have had with the SEC over the years, this collaboration has enabled us to push forward key initiatives aimed at strengthening investor participation, enhancing transparency and confidence in Zambia’s Capital Markets.”

“On the cornerstone of our partnership with the SEC, is the Capital Markets Master Plan (CMMP) which represents the visionary growth of the development of our Capital Markets over the next decades,” Mr. Mazila stated.

He added that the in partnering with the SEC, the Association has seen a number of developments such as green bonds, private equity and other innovative instruments, which reflect its commitment to keeping Zambia’s markets dynamic and adaptable.

World Investor Week is a global initiative which is led by the International Organisation of Securities Commissions (IOSCO), with the support of local securities regulators worldwide.

The World Investor Week is held every year to raise awareness about the importance of investor education and protection.