Zambia‘s benchmark stock index became Africa’s best performer this year thanks to a rise in Copperbelt Energy Corp.
The 22-member Lusaka Securities Exchange All Share Index saw increases for the second year in a row in 2022, rising about 12% in dollar terms.
The majority of the index’s gain came from Copperbelt, which provides electricity to mining firms in Africa’s second-largest copper-producing nation.
After the government of President Hakainde Hichilema, who was elected in August of last year, assisted in resolving a disagreement the company had with the previous administration, local investors poured money into the stock of the electricity supplier.
Charles Mate, the founder of Stockbrokers Zambia Ltd., believes that the rise in the company’s shares could last into the following year.
“What we have seen really is a resurgence in terms of investor interest, especially from the domestic market,” Mate said. “This stock still has significant upside.”
Since 2020, Copperbelt, which is held by private equity firm Affirma Capital Singapore Pte more than a third of the time, has been embroiled in a legal dispute with the government. The conflict started to fade in January.
Copperbelt Energy is still inexpensive, according to Mate, who helped establish the local stock market in 1994 and served as its first general manager, with a trailing price-to-earnings ratio of roughly five times.