Powering Malawi’s Economic Resurgence: The Rise of Youth Led Investment and Growth

Key Business Points

• Increasing participation in the stock market: The number of trades on the Malawi Stock Exchange (MSE) has risen from 10,736 in 2023 to 14,471 in 2024, indicating growing investor confidence and participation.
• Growing demand and financial literacy: Market analysts attribute the surge in trading activity to higher demand and growing awareness among investors, aided by financial literacy drives and easier access to market information.
• Opportunities for small entrepreneurs: Initiatives such as the Mzinga Incubation Programme and investor symposium aim to create pathways to capital for small and medium enterprises, promoting inclusive development and realigning financial sector priorities.

The Malawi Stock Exchange (MSE) is experiencing a significant surge in trading activity, with the number of trades rising from 10,736 in 2023 to 14,471 in 2024. This growth in participation is attributed to higher demand and growing awareness among investors, driven by financial literacy drives and easier access to market information. Public participation in the stock market has grown significantly, according to Kelline Kondowe, MSE chief operations officer. The volume of shares traded has doubled, and the value of shares traded has jumped from K77.2 billion to K124.7 billion.

Market analysts Benedicto Nkhoma and Kondwani Makwakwa note that the surge reflects higher demand and growing awareness among investors. The Malawi All Share Index has risen from 143,706 to 600,469 points, and market capitalization has climbed from K7.8 trillion to K33 trillion. Blue-chip counters such as National Bank of Malawi plc, FMB Capital Holdings Limited plc, and NBS Bank plc have led the rally, recording triple-digit gains.

However, despite the growing interest in the stock market, the gap between awareness and access remains wide. Financial literacy levels are low, and many small entrepreneurs lack the knowledge or confidence to participate. Stanford Magalasi, a 36-year-old hardware shop owner, says, "Honestly, I would be more interested if someone showed me where to start in language I understand." University students Christy Longwe and Connex Chirwa also express interest in investing, but lack knowledge and are cautious about making a loss.

To address this challenge, financial institutions are working to promote a savings and investment culture. The Reserve Bank of Malawi (RBM) is incorporating financial literacy into the curriculum and organizing initiatives such as Global Money Week to demystify investing. The RBM wants to empower Malawians to make informed financial decisions, says Boston Maliketi Banda, RBM director of public relations. The Mzinga Incubation Programme and investor symposium are also creating pathways to capital for small and medium enterprises.

Despite the progress made, barriers persist, and trust, education, and inclusion are needed to increase participation in the stock market. Magalasi worries about hidden costs and unclear processes, while Longwe and Chirwa are willing to pay a commission for guidance and accountability. However, with growing appetite, especially among young people, the MSE is beginning to look less like a distant tower of finance and more like a practical tool for everyday citizens. As Makwakwa notes, "most young people want something better. If we make investing accessible, safe, and relatable, they will come." This growing interest in investing is an opportunity for Malawian businesses to "kuthandiza kwanu" (help each other) and promote financial inclusion.

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