Cyclone dims Malawi Stock Exchange outlook
The 16-counter Malawi Stock Exchange (MSE) fears that the chaos triggered by Cyclone Freddy could affect its performance in the short to medium terms.
Over 72 hours of non-stop rains and heavy winds caused floods and mudslides which damaged power lines, roads and farmlands and livestock in about 10 districts of the Southern Region.
In an interview Thursday, MSE Chief Operations Officer Kelline Kondowe said the short-term outlook is dim.
She said the cyclone could have a negative effect on the economy, which will affect the industry.
“There will obviously be an impact, but as to what extent that impact can be, we have to wait for the month to last and see how much the market will be affected,” Kondowe said.
She said performance of the market is likely to be affected as investors are expected to be reacting.
Minister of Finance and Economic Affairs Sosten Gwengwe Thursday said the Treasury will re-align the K3.87 trillion 2023-24 national budget, which he presented to Parliament just two weeks ago, to accommodate the recovery budget line.
Private sector players and economists fear for the operating environment and economic outlook, which they say have become volatile and murky, respectively.
Malawi Confederation of Chambers of Commerce and Industry President Lekani Katandula said in a recent interview there will be a significant adverse impact on the private sector due to recent developments.
Economics Association of Malawi (Ecama) Executive Director Frank Chikuta said the immediate economic impact is the disruption to economic activity as people try to come to terms with the tragic loss of lives and livelihoods, damaged infrastructure and power supply, sanitary infrastructure and other related utilities.
Malawi University of Business and Applied Sciences-based economist Betchani Tchereni said the extent of the damage is felt at the household, government and business levels.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.
