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Experts weigh in on capital market trends

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CHOKANI—It takes time
for companies to list

Financial advisory firm, Bridgepath Capital Limited, has said capital market remains “small” to absorb the country’s available funds for investment including that held in the pensions and insurance sectors.

The firm’s chief executive officer Emmanuel Chokani said this during a customer engagement organised by Zamara pension in Blantyre on Wednesday.

Chokani said, with funds from the pensions sector alone hitting K1.4 trillion as at June this year, and with the Malawi Stock Exchange having 16 counters, the listed equity cannot absorb all the resources.

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He added that there is a need to have more companies listed on the local bourse to provide a variety of listed investments for funds from different sectors.

“However, it takes time for companies to list on the stock market. But I also want to advise fund managers that they can still explore opportunities in private companies that are not listed on Malawi Stock Exchange and invest in them,” Chokani said.

Reserve Bank of Malawi Governor Wilson Banda expressed similar sentiments over the weekend, encouraging companies to utilise the stock market.

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“We created the Malawi Stock Exchange but it needs some active market players to support it. For example, we have a window in trading in securities and we need discount houses to support such,” he said.

Malawi Stock Exchange Chief Executive Officer John Kamanga said the stock market is on the move to attract more listings.

“We are into what we call business clinics and we have visited a lot of companies to sensitise them to issues such as benefits of using the stock market because it will not only benefit the companies, the benefits will spill over to government through corporate tax, Pay As You Earn and Value Added Tax after the raised capital is put to use,” he said.

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