By Jones Gadama
The Malawi Stock Exchange is reaching out to small and medium enterprises to explore the benefits of listing on the stock market.
MSE Chairperson James Kamwachale Khomba believes that the advantages of listing far outweigh the potential loss of administrative power.
Speaking at a symposium in Blantyre, Khomba acknowledged that many Malawian SMEs are hesitant to go public due to concerns about losing control and power over their businesses.
However, he emphasized that listing on the stock market can provide SMEs with crucial capital for growth and development.
Listing on the MSE offers several benefits to SMEs, including access to additional capital, improved corporate governance, and increased visibility. SMEs can raise funds to expand their businesses, innovate, and create jobs.
They can also develop robust financial strategies, enhancing their credibility and attractiveness to investors.
To support SMEs in navigating the listing process, the MSE has established the Enterprise Development and Growth Exchange and the Mzinga incubation program.
These initiatives provide SMEs with capacity-building support in areas such as corporate governance, financial reporting, legal compliance, and preparation of listing documentation.
The MSE has already seen success with six local companies joining the Mzinga Incubation Programme.
These companies are receiving support to list on the EDGEX platform. Thomson Kumwenda, Chief Financial Officer at the Malawi Agricultural and Industrial Investment Corporation, emphasized the importance of continued engagement with SMEs to educate them on the benefits of listing on the stock exchange market.
The MSE’s efforts to engage SMEs and provide support for listing on the stock market are crucial for promoting economic growth and development in Malawi.
By highlighting the benefits of listing and providing capacity-building support, the MSE is creating opportunities for SMEs to access additional capital, improve corporate governance, and increase visibility.
As the MSE continues to work with SMEs, it is likely that more businesses will take advantage of the stock market to drive growth and innovation. With the right support and guidance, SMEs can thrive and contribute to Malawi’s economic development.
The MSE’s initiatives are a positive step towards promoting economic growth and development in the country.
