In a bid to transform and grow the capital market in the country, the Reserve Bank of Malawi (RBM) plans to launch a Malawi Capital Market Development Plan in the second half of the year.
The plan gives detailed and systematic approaches to growing the sector’s input to the economy, among other things.
RMB spokesperson Onelie Nkuna said an effective capital market would be ideal in strides towards attaining aspirations embedded in the Malawi 2063, the country’s long term economic development plan.
She said that the plan is a roadmap, with measurable actions towards strengthening the capital market to ensure it efficiently mobilises and distributes savings to the economy.
“The ultimate goal is to transform the capital market in Malawi so that it contributes materially to the country’s economic transformation and sustainable development by efficiently creating savings and generating long-term financial resources that will also finance the country’s capital investment needs,” she said.
Through the plan, stakeholders would lay a foundation for Malawi’s capital market to qualify for classification as an emerging market.
The plan has thematic areas, the first focusing on increasing access to the capital market for domestic issuers and investors, the second aims at improving the capital market’s general performance, infrastructure, intermediation standards and integrity and the last to create savings and investment opportunities for institutional and retail investors.
In an earlier interview, Malawi Stock Exchange Chief Executive Officer John Kamanga underscored the importance of markets to national development and wealth creation.
Kamanga believes capital and stock markets have the power to facilitate infrastructure development, create employment opportunities and reduce income inequalities.
“The stock market offers an opportunity for the citizenry to create wealth by investing in the products offered on the stock market,” he said.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.