By Benadetta Chiwanda Mia:
The Malawi Stock Exchange (MSE) is making significant strides towards launching a mobile trading platform by the end of this year.
MSE Chief Operating Officer Kelline Kondowe Kondowe said the mobile trading platform would allow investors to open accounts with stockbrokers and trade shares and bonds online, broadening access to the stock market.
Kondowe indicated that the project was ongoing, with the vendor still in the system development phase.
“The process has been quite long, considering the complexities involved. We aim to offer a seamless user experience, and we believe users will appreciate the final product,” Kondowe said.
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The current system requires investors to contact brokers and submit Know Your Customer (KYC) documents to open an account, a process the new system aims to streamline.
“As such, we anticipate more retail investors to join the stock market and consequently we should see liquidity increasing. We also expect the platform to ease resource mobilisation as the platform can also be used by companies during IPOs,” she said.
Despite the long development phase, MSE remains optimistic about completing the first phase of the platform by the end of 2024.
“Some of the systems we intend to integrate with are undergoing upgrades. Therefore, we anticipate a phased roll-out, with the first phase featuring minimal functionalities. We expect to complete this phase before the end of the year, with the second phase scheduled for next year,” Kondowe said.
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Market analyst Bond Mtembekeza believes that the mobile trading platform will significantly enhance market accessibility, fostering both convenience and efficiency.
“Key benefits include increased market participation real-time trading and portfolio management, and improved liquidity,” he said.
In addition to ongoing initiatives, Mtembekeza emphasises the need for the capital market to introduce new financial instruments such as Exchange Traded Funds (ETFs). He also advocates for continuous investor education and the strengthening of listing requirements to boost market operations.
Kondwani Makwakwa, an equity research analyst at Stockbrokers Malawi Limited, echoed the sentiments.
“The mobile trading platform will make it easier for new investors to get involved with the Malawi Stock Exchange. It will also improve market access speed for both new and existing investors, allowing them to trade from anywhere,” he said.
Makwakwa further stressed the importance of increasing investor education and public awareness to boost listings and share purchases.
The MSE is developing the system with funding from the Financial Inclusion and Entrepreneurship Scaling Project of the Reserve Bank of Malawi.
