Some six firms under the Malawi Stock Exchange (MSE) Mzinga Incubation Programme have been tipped to embrace corporate finance through effective finance management to grow their businesses.
This follows a second workshop under the programme over the weekend in Blantyre, where representatives of the firms were oriented on capital raising, investment decisions, risk management and financial planning.
MSE Chief Executive Officer John Kamanga said one of the primary challenges SMEs in Malawi face is access to capital, as traditional banking institutions often perceive SMEs as high-risk ventures, leading to limited financing options.
“SMEs must develop robust financial strategies that align with their long-term goals. This involves meticulous budgeting, cash flow management and regular financial audits. By maintaining accurate and up-to-date financial records SMEs can make informed decisions, attract potential investors, and build trust with stakeholders,” Kamanga said.
He added that financial literacy and capacity building are essential for the success of SMEs as they are equipped with the knowledge and skills to manage their finances effectively.
Senior Finance Officer and Company Secretary for Nagowa Finance Limited Dumisani Chimaliro said the workshop was essential for them to know how they are progressing with their corporate advisers.
“This was really essential for all participants as we prepared to list on the EDGEX platform of the stock exchange since corporate finance aims to maximise shareholder value while ensuring the financial health and sustainability of an organisation.
“This workshop has been very beneficial as, by understanding corporate finance, we shall be able to make informed decisions, optimise the financial performance of our companies, ultimately building trust of investors and stakeholders,” Chimaliro said.
Six local companies entered the MSE’s Mzinga Incubation Programme with anticipation to list on the local bourse at the end of orientation.
The six include Agro-Input Supplies Limited, Combine Cargo Limited, Nagowa Finance Limited, WealthNet Finance Public Limited Company, Ziweto Enterprises Limited and Unitech Technologies Limited.
