Capital Market Participation in Zambia: The Role of Financial Awareness, Socioeconomic Position and Perceived Barriers

Abstract

Despite sustained financial sector reforms, household participation in capital markets remains persistently low across many emerging economies. This study examines the correlates of capital market participation in Zambia, with a particular focus on financial socialization channels rather than purely income-based explanations. Using nationally representative micro data from the 2020 FinScope Zambia Survey, the study estimates a probit model of participation and a multinomial logit model to examine perceived barriers among non-participants. The results indicate that capital market awareness is positively associated with participation, while socioeconomic position is also positively associated with participation. Among non-participants, knowledge-related barriers are more strongly associated with lower awareness, while women are more likely to report trust-related barriers. The findings are consistent with a financial socialization perspective, although the cross-sectional design does not permit causal inference. The study contributes to the literature by re-framing capital market participation in Zambia as a behavioural and institutional outcome, with important implications for financial education, investor protection, and market development policies in emerging economies.