MSE Capital Soars: Fueling Malawi’s Economic Growth and Prosperity

Key Business Points

• The Malawi Stock Exchange (MSE) has achieved extraordinary growth in 2025, with market capitalisation reaching K33.4 trillion ($18.92 billion) by November, surpassing the country’s nominal GDP of K30 trillion ($17 billion).
• Investor confidence has driven the MSE index to rise over 260 percent year-to-date, with strong demand from both retail and institutional investors, and limited supply pushing prices higher and improving market liquidity.
• The financial sector and conglomerates have been key drivers of growth, with some counters registering significant capital gains, while others, such as the property sector, have experienced meagre or negative growth, highlighting the need for measures to boost investor confidence in weaker sectors.

The Malawi Stock Exchange (MSE) has registered remarkable growth in 2025, with market capitalisation expanding to K33.4 trillion ($18.92 billion) by November. This surpasses Malawi’s nominal gross domestic product (GDP) of K30 trillion ($17 billion), underscoring the bourse’s growing role in wealth creation, capital formation, and investment allocation. According to MSE Chief Executive Officer John Kamanga, the November performance highlights the depth of investor confidence and resilience of listed companies. The MSE index rose more than 260 percent year-to-date, driven by strong balance sheets, resilient business models, and widening profit margins across most counters.

Investor demand has surged across both retail and institutional segments, with retail participation growing significantly and pension funds and other institutional investors allocating substantial capital. The combination of strong demand and limited supply has pushed prices higher and improved market liquidity. Stock market analyst Brian Kampanje described 2025 as a year of massive capital gains for shareholders, particularly in the financial sector and conglomerates with large financial portfolios. However, some counters registered meagre or negative growth, especially in the property sector, highlighting the need for measures to boost investor confidence in weaker sectors.

The November performance contrasts sharply with the buoyant start to the year, when the Malawi All Share Index jumped 29.9 percent month-on-month in January 2025. Key drivers included NBS Bank, which gained 100.68 percent, FDH Bank at 85.20 percent, and National Bank of Malawi at 73.27 percent. By November, the rally had broadened across most listed companies, cementing 2025 as one of the most remarkable years in the exchange’s history. As the MSE continues to grow, it is essential for businesses to consider kugonga mbewa (diversifying investments) and kutengera kwa tsogolo (planning for the future) to capitalize on the opportunities presented by the exchange. With the right strategies, businesses can navigate the soko la hisa (stock market) and achieve malo abwino (success).

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