By Chimwemwe Mangazi:
Expectations are high that trading activity on the Malawi Stock Exchange will increase in 2024 owing to anticipated infrastructure developments and amendment of the Immigration Act on visa requirements.
On the 9th of February, president Lazarus Chakwera delivered a State of Nation Address (Sona) where he indicated, among other things, that government is working on infrastructure projects such as construction of Namikalango Bridge in Chikwawa, Makanjira road in Mangochi, rehabilitation of the Kasungu loop road and construction of one lane of the dual carriageway from Kanengo to Crossroads in Lilongwe.
“Significant progress has been made on the Lilongwe City Road expansion programme, specifically on Kenyatta Road, Sharrar and Mzimba streets, which will be completed in the new financial year. The other one is Mpatamanga Bridge, which will be completed before the start of the new financial year, while construction of the port in Likoma is at 80 percent,” Chakwera said.
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Some 24 hours earlier, the government had amended immigration laws and removed visa restrictions for people from 78 countries.
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The development means people from Australia, Canada, China, Germany, the United Kingdom (UK) and the United States (US) will no longer need visas to enter the country.
Commenting on the developments, MSE Chief Executive Officer John Kamanga said such infrastructure developments will require financial resources where some will be sourced locally though issuance of long-term financial instruments such as Treasury Notes and Government Bonds.
“…These will in turn help in widening the scope of financial products in the market but at the same time help in financial deepening of our market.
The removal of Visas in some countries means that this will help in attracting foreign tourists into our country which will in turn translate into an increase in foreign exchange resulting into availability of foreign exchange and stability of our Kwacha against other trading currencies.
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“The stability of the Kwacha will bring along investor confidence especially on foreign investors who have been facing challenges to repatriate both the gained capital as well as the dividend earned,” Kamanga said.
