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Malawi Stock Exchange courts government entities

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The Malawi Stock Exchange (MSE) is engaging government institutions to utilise the local bourse in raising funds for initiatives in its quest to maximise market entry.

Currently, MSE has 16 counters which financial experts say are not enough to consume the available resources such as pension funds, now valued at about K1.4 trillion.

Speaking in an interview, MSE Chief Executive Officer John Kamanga said they have engaged the institutions through business clinics which aim at sensitising companies on the benefits of the stock market when a company lists or raises capital through bond issuance.

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He said government enterprises the MSE has engaged include Electricity Generation Company, Electricity Supply Corporation of Malawi, Malawi Housing Corporation, water boards and Roads Fund Administration.

“Our message to them is that if they utilise domestic resources they will be able to create wealth for Malawians and contribute to the fiscal space because, apart from interest from bonds, they will also engage in projects which will create employment and increase government revenue,” he said.

Brigepath Capital Chief Executive Officer Emmanuel Chokani said, at current rate, the listed equity was not enough to consume all the available funds, saying there is a need to woo more firms.

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He admitted, however, that listing on the stock market takes time because investors need to conduct thorough scrutiny.

“Investors need to be convinced on the benefits of listing on the market and more work needs to be done,” he said.

The Reserve Bank of Malawi has been raising money for the government on the stock market through Treasury bills and Treasury notes.

In 2017, NBS Bank plc raised over K7 billion-bond— a debt investment in which an investor loans money to an entity—with the Roads Fund Administration to finance the rehabilitation and construction of a road in Lilongwe.

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