THE Securities and Exchange Commission (SEC) has come up with an initiative to help Local Authorities boost their revenue through a bond. 

This is being done in partnership with the United Nations Capital Development Fund (UNCDF). 

The Initiative dubbed ‘the Municipal Bonds Project’ seeks to address financial challenges faced by Local Authorities in fostering development at their level. 

ZANIS reports that SEC Chief Executive Officer, Philip Chitalu announced this at a media briefing in Lusaka. 

Mr Chitalu explained that the initiative is in line with the government’s decentralisation policy as it is dedicated at mitigating debt vulnerabilities and economic challenges at local governance level. 

He recognised the important role played by Local Authorities in delivering fundamental public services but however noted the increased pressure placed on them due to various factors such as population growth and unemployment. 

He emphasised that it is therefore important for Local Authorities to have sustainable financing to enable them finance local development to fully achieve decentralisation. 

Mr Chitalu revealed that a national task force has since been formed to drive the effective implementation of the Municipal Bonds Project within Zambia’s development framework. 

“The Taskforce comprises representatives from key government Ministries, regulatory body’s financial institutions and local authorities. It will play a critical role in guiding the strategic planning, execution and oversight of subnational revenue bond issuance,” he explained. 

Meanwhile, Mr Chitalu has also disclosed that the Commission has recorded outstanding Corporate Bonds amounting to K2.6 billion at the end of the third quarter of 2024.

He said this is an increase by 3.17 percent from the previous quarter which was K2.5 billion.

Mr Chitalu has attributed the increase to the new issuance of corporate bonds of K71.8 million in the microfinance sector.