Some small scale local business operators on Tuesday took to task officials from the Malawi Stock Exchange (MSE) and advisory firms for what they called ‘being sidelined’.
This came out during a debt market symposium MSE organised in Blantyre.
It was held under the theme creating value and wealth on the MSE debt Market.
Speaking during a plenary, Indigenous Business Association of Malawi president, Mike Mlombwa said small scale operators are not accommodated to raise funds from the market.
“I have visited a number of offices, I even engaged the RBM governor and the MSE chief executive [officer] but there is nothing for us, why do you prefer foreign-owned companies than locals?” Mlombwa wondered.
K and JL Group Limited Managing Director, Kondwani Maluwa, said listing requirements are too selective.
Bridgepath Capital Chief Executive Officer, Emmanuel Chokani, was one of the panelists and in his presentation highlighted existing mismatches on expectations.
“Local companies should engage consultants who would help bring them to a level where they meet all the necessary requirements and fit for listing or issuing of debt instruments but the main problem is that they do not comply with all the requirements,” Chokani said.
MSE Chief Executive Officer, John Kamanga, quashed the concerns rating the arguments raised as myths.
“The corporate governance structure of most of the local companies or SMEs are family or relations which make it difficult for others to come in to invest, companies need to open up and have independent board of directors and leave positions in the company to other independent people,” Kamanga said.
Currently only the Malawi Government and Mybucks Banking Corporation have issued debt instruments on the market.
Mybucks was looking to raise K14 billion through the market in phases and have so far raised K12.5 billion.
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