Malawi Stock Exchange counts on regional integration for growth

Post was last updated: September 26, 2017

The Malawi Stock Exchange (MSE) has said it is banking on the Southern African Development Community (Sadc) stock exchanges forum to grow the number of its counters and further see a surge in market liquidity going ahead.

Recently, Reserve Bank of Malawi Governor, Dalitso Kabambe, challenged the MSE to list at least five new counters before the end of the year.

In an interview after hosting the Sadc Stock Exchanges meeting last week, MSE Chief Executive Officer, John Kamanga, said through the committee, the market will tap vast operation skills.

Factoring in economies of scale, Kamanga then said there is room for the MSE to widen its catchment area.

“We have a huge population in Sadc and it means that we will have more investors. If a company raises capital in Malawi; and if we open up in terms of regional integration, at least the uptake for that instrument will be high because we are opening up to a larger community,” he said.

The stock market in Malawi remains among underdeveloped stock markets in the region, with only 14 counters.

However, Kamanga said with the instruments set by the committee, there is hope to increase the market’s capacity and opens up opportunities for dual listings.

“Once we open up, we should be able to attract companies from other countries who could raise capital in Malawi and in so doing, we are giving opportunity to Malawian investors to earn dividends in hard currency. And that is ideal for the MSE and the economy,” Kamanga said.

Chairperson of the Sadc Stock Exchange Committee, Zeona Jacobs, said the platform aims at creating cross border trade and harmonised regulation.

“It stimulates liquidity and, at the moment, some of the markets are smaller than others with less listed companies and less investors. The exchange will help companies to grow their businesses,” she said.

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