Malawians urged to invest into stock market

By Steven Godfrey Mkweteza

Malawi Stock Exchange (MSE), has reiterated the need for the country to intensify efforts on the financial inclusion drive by subscribing to the long term instruments such as shares if the wealth creation aspirations is to be met.

Speaking during the Minority Shareholders Association of Listed companies (Misalico) shareholding literacy open day program in Blantyre, Chief Executive officer (CEO) for the Stock market Company, John Kamanga said it is worrisome to note that out of 19 million country’s population, slightly 50,000 of the people were listed on malawi stock exchange as shareholders.

“This is mainly because of information gap as a result of low levels of financial literacy and education campaigns,” said Kamanga.

Kamanga said the country need 1 million investors into the stock markets to bring about tangible economic development from the sector.

“This can be achieved if the general public develop a culture of long term savings in creating and build wealth towards the economic development of the country,” he said.

The chief executive officer also disclosed that the country has since 2016 to date, realized over MK5.9 trillion corporate tax from the stock market.

He said the money has helped the government finance various development initiatives such as road maintanace, buying of medical stuffs and paying civil servants salaries among others.

Kamanga has since applauded Misalico for joining the Malawi stock exchange and the Reserve Bank of Malawi on raising awareness towards sensituzing the general public on investing in stock market by buying shares and bonds.

In a separate interview, chairperson for Misalico responsible for literacy and education program, William Matewere said is fully geared to make a lot of people buy shares of their choice country wide.

“We want to join hands with others in raising awareness on how to invest in the stock market after we have found that there is an information gap. Some people thought this area is for the elite people,” said Matewere.

Among other things, Matewere said his association is advocating on increased number of investors on the Malawi Stock Exchange, which he says it has vast opportunities.

“While others keep their money-making strategies hidden, we are committed to sharing the benefit to benefit all Malawian,” he said.

And on his part, Benedicto Nkhoma, One of the long time investors and motivation speakers at the colourful event, encouraged people to cultivate an interest of investing into the stock market, saying he has earned more profits in the share market.

Nkhoma, who boasted to be now a billionaire through investing into share market for the last twenty years now, said there is a huge take home package from the market as it is not susptible to economic shocks such as inflation.

Concurring with Nkhoma, a female motivation speaker, Julian Somba Banda, encouraged women not to underate themeselves erasingity of women underrating themselves but join the and tap benefits from the long and short term investment portfolio.

“I merely invested less than 100 million but I have made half billion malawi kwacha over the years. You can make your choice either by investing in Hotels,Banks and see a way through in life through the capital gains and dividends, she said, adding that shares could also be used as a collateral or loan security.

The Malawi Stock Exchange (MSE) is licensed under the financial service Act 2010, operates under security Act 2010 and companies Act 2013.

It has been in existence since 1994 and started equity trading in November 1996 aiming at providing markets places for buyers and sellers of listed securities and it stated with 18 listed companies.