Updated: 28 September 2026
The proposed Zambia gold ETF could give individual investors a new way to gain exposure to gold through the Lusaka Securities Exchange (LuSE). LuSE chief executive Nicholas Kabaso has said the exchange plans to introduce the product before the end of October 2026.
The fund will be sponsored by South Africa’s Absa Group and introduced from the Johannesburg Stock Exchange. If completed, it will be Zambia’s first gold exchange-traded fund and the first ETF of any kind available on LuSE.
However, the ETF has not launched yet. LuSE has not publicly released the final trading symbol, confirmed listing date, trading currency, fees or local listing document. Investors should therefore distinguish between an announced target and a completed, approved listing.
Zambia’s proposed gold ETF at a glance
| Item | Information currently available |
|---|---|
| Planned launch | Before the end of October 2026 |
| Exchange | Lusaka Securities Exchange |
| Product | Gold exchange-traded fund |
| Sponsor | Absa Group |
| Source market | Johannesburg Stock Exchange |
| Listing method | Listing by introduction |
| Likely existing product | Absa NewGold ETF, subject to final confirmation |
| Final ticker, currency and fees | Not yet publicly disclosed |
What did LuSE announce?
Kabaso disclosed the plan during an interview with Bloomberg reporter Eric Ombok in Nairobi. Bloomberg used the interview for a written Markets report rather than a publicly available television or YouTube broadcast.
According to the Bloomberg report, LuSE intends to introduce an Absa-sponsored gold product through a listing from the Johannesburg market. The announcement was subsequently covered by BusinessDay and Copperbelt Katanga Mining.
The end-of-October date should be treated as LuSE’s intended timetable—not a guarantee that trading will begin by that date. The necessary regulatory, exchange, custody, settlement and market-making arrangements must first be completed.
What is a gold ETF?
A gold ETF is an investment security designed to follow the price of gold. Instead of purchasing coins or bars, an investor buys units in a fund through a securities exchange. Those units can normally be bought and sold in much the same way as listed shares.
A physically backed gold ETF generally holds allocated gold bullion through an approved custody arrangement. Each unit represents a small economic interest in that gold after allowing for the fund’s expenses.
This can remove some of the practical difficulties associated with owning bullion, including:
- finding a trustworthy gold dealer;
- checking the weight and purity of the metal;
- paying for secure storage and insurance;
- transporting physical gold safely; and
- finding a buyer when the investor wants to sell.
The investor owns ETF securities, not gold bars stored at home. Ordinary retail investors should not assume that a small number of units can be exchanged directly for physical bullion. They would normally exit the investment by selling their units through the exchange.
Is the product Absa NewGold?
The information currently available strongly indicates that the proposed product is likely to be the Absa NewGold ETF, although the final LuSE listing notice must confirm its identity and local terms.
The existing NewGold ETF is listed on the JSE under the code GLD. Its published product information says that each security represents approximately one-hundredth of a fine troy ounce of gold, adjusted over time for expenses. The securities are backed by allocated bullion held under the fund’s custody arrangements, and the product seeks to track movements in the spot price of gold.
The existing JSE product does not pay dividends because physical gold does not generate profits, interest or rental income. Its published annual expense ratio is approximately 0.30%. Investors can review the existing Absa NewGold factsheet.
Those are the features of the existing South African product. LuSE’s final documents will determine the Zambian trading symbol, currency, minimum quantity, transaction costs and market-making arrangements.
What does “listing by introduction” mean?
A listing by introduction allows an existing security to be admitted to another exchange without conducting a new public offer on that exchange.
In this case, an existing JSE gold product would be admitted to LuSE so that investors can trade its units through the Zambian market. The ETF already exists; it is not a newly formed mining company and it is not conducting a conventional initial public offering.
This means the introduction itself would not necessarily raise new money for the ETF issuer. It should also not be counted as one of the five prospective company listings that LuSE is separately pursuing.
If you are unfamiliar with what happens when securities begin trading, read our explanation of IPO price versus market price.
How could an individual investor buy the ETF?
Once the fund has received the required approvals and started trading, the process should be broadly similar to buying a LuSE-listed share.
- Open or use an existing securities account through a LuSE-licensed stockbroker.
- Complete the broker’s identification and compliance requirements.
- Deposit enough money to cover the investment and applicable charges.
- Find the ETF using its confirmed LuSE trading symbol.
- Choose the number of units to purchase.
- Submit a market or limit order through the available trading channel.
- Review the contract note and keep a record of the price, fees and settlement details.
LuSE explains that ETFs can track an index, a portfolio of securities or an individual commodity such as a precious metal. Like shares, their market prices are affected by buying and selling demand. See LuSE’s explanation of equity securities and ETFs.
Investors who are new to the exchange can begin with our guide on how to buy shares in Zambia.
What will determine an investor’s return?
The result will not depend exclusively on whether the international gold price rises or falls.
1. The international gold price
If the price of gold rises, the underlying value of the ETF should generally increase. If gold falls, the value of the investment can decline.
2. Exchange rates
Gold is commonly priced internationally in US dollars. A Zambian investor’s return could therefore be affected by movements between the kwacha, US dollar and possibly the South African rand. The precise exposure will depend on the final trading and settlement arrangements.
3. Fund expenses
Management, custody and operating expenses gradually reduce the fund’s return relative to the underlying gold price.
4. Brokerage and exchange charges
Investors will incur transaction costs when buying and selling. The complete local cost structure has not yet been published.
5. Premiums and discounts
An ETF’s market price can be slightly higher or lower than the value of its underlying assets. Paying a substantial premium can reduce the investor’s eventual return.
6. Liquidity and the bid–ask spread
A new product may initially have relatively few buyers and sellers. Limited liquidity can create a wide difference between the highest buying price and lowest selling price. An effective market maker will therefore be important.
Is a gold ETF a safe investment?
A regulated ETF may be more convenient than storing physical gold, but it is not risk-free or capital-guaranteed.
- Gold-price risk: Gold can experience substantial gains and losses.
- Currency risk: Exchange-rate movements can increase or reduce the return measured in kwacha.
- Liquidity risk: An investor may struggle to obtain a favourable price if trading activity is low.
- Premium and discount risk: The trading price can move away from the value of the underlying gold.
- Tracking error: Expenses and operational factors can cause performance to differ from the international gold price.
- Operational risk: The structure depends on the issuer, custodian, authorised participants, market maker, exchange and settlement system.
- No regular income: Gold does not produce dividends or interest.
- Concentration risk: Placing too much of a portfolio in one commodity can create unnecessary volatility.
Gold is sometimes described as protection against inflation, currency weakness or economic uncertainty. It may perform that role during some periods, but it does not provide guaranteed protection. Investors should consider how it fits within a diversified investment portfolio.
What rules apply to ETFs in Zambia?
Zambia introduced a dedicated framework through the Securities (Exchange Traded Funds) Guidelines, 2024.
The framework addresses the authorisation of ETF managers, appointment of trustees or custodians, creation and redemption of units, authorised participants, market-making arrangements, valuation, disclosure and custody of underlying assets.
The regulatory framework can be reviewed through ZambiaLII’s copy of Gazette Notice 342 of 2024. Investors must still examine the final product-specific documents once LuSE and the issuer release them.
What are the five prospective LuSE listings?
Alongside the gold ETF announcement, Kabaso said LuSE was preparing for five potential company listings from the manufacturing, mining and telecommunications sectors.
Two could potentially take place before the end of 2026, while the other three may move into 2027. Collectively, the transactions could raise approximately US$1 billion.
These figures describe a prospective pipeline. They do not mean that five transactions have been approved or that US$1 billion has already been raised.
The only publicly identified potential transaction involves ZCCM Investments Holdings. ZCCM-IH is reportedly considering selling part of an existing shareholding to increase the number of shares available to the public and meet LuSE’s minimum 25% free-float requirement.
No public information has established the number of shares, offer price, transaction structure, expected date or amount that might be raised. The other prospective issuers have not been named.
Why this development matters
Most LuSE investment opportunities have traditionally been concentrated in company shares and fixed-income securities. A commodity-linked ETF would introduce a different type of market exposure.
If successfully introduced and actively traded, it could:
- expand the investment choices available to individuals and institutions;
- provide regulated local access to international gold-price movements;
- support portfolio diversification;
- encourage wider participation in LuSE;
- demonstrate Zambia’s ability to accommodate cross-listed products; and
- prepare the market for additional ETFs.
Its success should not be judged only by whether it is listed. Affordability, trading activity, disclosure, investor education, narrow bid–ask spreads and reliable market making will determine whether it becomes a useful product.
Questions investors should ask before buying
- Has SEC Zambia granted final approval?
- What is the confirmed listing date?
- What is the LuSE trading symbol?
- Will the ETF trade in kwacha, US dollars or another currency?
- How much gold will each unit represent?
- What is the minimum tradable quantity?
- What annual expenses and local transaction charges apply?
- Who will act as the local market maker and authorised participants?
- How frequently will net asset value be published?
- Where will the underlying bullion be held?
- What happens if local trading becomes illiquid?
- What tax treatment will apply to gains?
Until these details are available, investors cannot calculate the total cost or fully assess whether the product is appropriate for their objectives.
The bottom line
The proposed Zambia gold ETF is a potentially important development for the country’s capital market. It could provide a more convenient route to gold exposure while broadening the investments available through LuSE.
But it has not launched yet. Its final name, ticker, trading currency, fees, market maker, listing date and regulatory approval remain to be confirmed. Investors should treat October as a target and wait for the official LuSE listing notice and product documents before committing money.
The five-company pipeline is also encouraging, but it remains prospective. The estimated US$1 billion should not be presented as capital that has already been raised.
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This article is provided for financial education and general information. It is not personalised investment, legal or tax advice, an offer to sell securities or a recommendation to purchase the proposed ETF. Product terms and regulatory status can change. Verify current information using official LuSE, SEC Zambia and issuer documents before investing.
Sources and further reading
- Bloomberg: Zambia Stock Market to Debut Gold ETF, Sees Five Stock Listings
- BusinessDay: Zambia exchange targets first gold ETF and five listings
- Copperbelt Katanga Mining: LuSE builds US$1 billion listing pipeline
- Lusaka Securities Exchange: Equity securities and ETFs
- Securities (Exchange Traded Funds) Guidelines, 2024
- Absa NewGold ETF factsheet
