Is there a solution to the challenges being faced in the capital markets in Zambia?

ENGLISH ABSTRACT: This study examines whether there is a solution to the challenges being faced in the capitalmarkets in Zambia. Literature on how other countries have overcome these challenges isreviewed to determine whether there is a solution to these challenges. The study also testsfor the market efficiency of the Lusaka Stock Exchange (LuSE). The Random Walk Modelis used to test for weak form efficiency using the Augmented Dickey-Fuller (ADF) Test. TheADF Test is conducted for the period May 1995 to October 2008 using individual stocks,depending on the date the stock was listed on the LuSE. The result of this study shows thatthere is a solution to some of the challenges being faced in the capital markets in Zambia.The results also show that the LuSE market is a weak form of efficiency.