By Benadetta Chiwanda Mia:
Businesses and investors have been challenged to leverage capital markets’ potential for mobilising sustainable financing for economic development.
Capital Markets Association of Malawi (Cmam) President John Kamanga said this at the inaugural annual conference for the association in Blantyre.
He rated the market as an enabler for growth across key sectors of the economy, including infrastructure, energy, agriculture and tourism.
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He described the launch of the Malawi Stock Exchange (MSE) Sustainable Bond Guidelines on Friday as a milestone aimed at bolstering sustainable finance.
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“These guidelines represent a transformative step towards resource mobilisation for projects that foster a greener and more resilient economy,” Kamanga said.
With the global shift towards a green economy, he underscored the opportunity to incorporate carbon credits into Malawi’s capital markets.
Malawi Stock Exchange Board Chairperson James Kamwachale Khomba reinforced the transformative potential of capital markets. Khomba cited global trends, noting that in 2023 alone, climate finance flows reached $1.5 trillion, with green bonds raising $587 billion.
He stressed that with the global economy’s shift towards environmental, social, and governance investments, projected to exceed $40 trillion by 2030, Malawi could not afford to be left behind.
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Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa acknowledged the capital market’s potential to raise significant financing targeting development projects aimed at building Malawi’s climate change resilience.
“The capital market has demonstrated its ability to raise significant funds, whether in bond markets or company listings. While still developing, there is enormous growth potential and what we need is increased awareness to maximise participation so that we fully realise these opportunities,” Makwakwa said.
