Malawi Stock Exchange trading up 593% in May – The Times Group

Powering Growth: Malawi’s Stock Exchange Sees Significant Gains

Post was last updated: August 19, 2025

Key Business Points

  • The Malawi Stock Exchange (MSE) has seen a significant increase in share prices and trading activity, with the Malawi All Share Index (Masi) gaining 24,127.52 points to settle at 449,662.23, driven by share price gains in major counters such as Standard Bank and Nico Holdings.
  • Despite strong investor confidence, the market has not recorded a new equity listing in five years, with compliance costs and ownership concerns cited as major deterrents for potential listers, highlighting the need for regulatory simplification and tax incentives.
  • The MSE is implementing initiatives such as the Mzinga incubation programme and business clinics to attract new listings and increase market diversification, which is currently dominated by the financial sector.

The Malawi Stock Exchange (MSE) has maintained a bullish run for the greater part of 2025, marked by rising share prices and trading activity. The market closed the week ending August 15, 2025, with the Malawi All Share Index (Masi) gaining 24,127.52 points to settle at 449,662.23, up from 425,534.71 points recorded on August 8. This sharp rise was driven by share price gains in counters that include Standard Bank, Nico Holdings, Press Corporation (PCL), NBS Bank, National Investment Trust Limited (NITL), and FMB Capital Holdings (FMBCH). The Masi’s year-to-date return stood at 161.37 percent in the week under review, significantly higher than the 25.46 percent recorded during the corresponding period last year, highlighting strong investor confidence in the market.

However, despite the strong performance to-date, the market has not recorded a new equity listing in five years, with the number of counters still stuck at 16. Equity market analyst Kondwani Makwakwa said many companies remained reluctant to list due to compliance costs and ownership concerns. "Many businesses in Malawi prefer to keep ownership private. Others are discouraged by the costs of compliance, reporting rules, and governance standards required when listing. Some also feel that the market has low liquidity and may not give them fair value," he said. Makwakwa suggested the need to simplify regulatory processes, provide tax incentives, and increase awareness of the benefits of going public to attract more listings.

Economic expert Marvin Banda argued that Malawi’s economic structure has limited market diversification, with the financial sector dominating listings. "It is not a coincidence that most players are in banking or insurance, considering that the levels of corresponding public domestic debt remain elevated, thus making banks very profitable. Many founders fear losing ownership while information obligations in pre- and post-listing may deter others," Banda said. He said the stock market presents an opportunity to grow business portfolios beyond the Malawi border to attract access to greater markets and access to additional capital for the development of businesses, using the Chichewa phrase "Kufuma pa mzunguko" to emphasize the importance of expanding business horizons.

MSE Chief Operating Officer Kelline Kondowe acknowledged that the number of listed companies has not increased but said investor participation has grown, driven by deliberate awareness campaigns and the exchange’s strong performance. "The positive performance of the market in a difficult macroeconomic environment has made people consider the stock market as an alternative investment avenue," she said. However, Kondowe said that Malawi’s narrow private sector and the dominance of family-owned enterprises were among the key obstacles to new listings. "Much of the private sector is family-owned and many fear losing control if they list. Unlike in other markets, in Malawi there are no policy incentives for companies that come to the exchange," she said. She insisted, however, that the regulatory environment had improved following a review of listing requirements.

The MSE is implementing initiatives to attract new listings, including the Mzinga incubation programme, business clinics with potential issuers, as well as symposia and workshops. These initiatives aim to address the concerns of potential listers and provide them with the necessary support to navigate the listing process. As the MSE continues to grow and attract new investors, it is essential for businesses in Malawi to consider the benefits of listing on the exchange, including access to capital, increased visibility, and "Kuwerengera kwa nzeru" (improved governance).

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Vanessa Banda
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