By Steven Godfrey Mkweteza
BLANTYRE-(MaraviPost)-Malawi Stock Exchange (MSE), says Malawians stand to benefit a lot if only they invest in long-term instruments such as stock markets.
Chief executive officer (CEO) of the company, John Kamanga said investing in long-term instruments such as stocks is reliable as compared to other options since it is not prone to other economic shocks.
Kamanga said while the stock market has its risks, like any venture, opportunities it presents are ideal for growing money. investments in long-term instruments are reliable as compared to other options.
Speaking in Blantyre during an open-day seminar organized by the minority shareholders association of listed companies (Misalico), the chief executive officer said financial literacy and education remain key in enhancing Malawians’ participation in the stock market.
He said the country needs to borrow a leaf from other neighboring countries such as Zambia where many people were improving their livelihood through investing in stock markets by buying shares of the companies and bonds.
“In Malawi, however, slightly 50,000 people against the population of 19 million people are currently listed on the Malawi Stock market.
“The country needs at least one million people to be on the stock market, hence, the need for public awareness,” he said
Kamanga also disclosed that the government has realized a total of MK 5.9 trillion in corporate tax from the stock markets since 2016 to date.
According to Kamanga, the country has currently a total of 18 listed companies on the stock market.
In a separate interview, the chairperson for the literacy and education committee for Misalico, William Matewere, said his association was dedicated to addressing the underrepresentation of indigenous Malawians on the stock market and ensuring broader participation that benefits the entire nation.
He said the campaign is aimed at the accumulation of wealth through shares and bonds on the stock market, thereby encouraging Malawians to engage in profitable business ventures.
He said the open-day seminar on demystifying the stock market was a way of creating a platform for conversation on the operations of the bourse.
“This seminar is aimed at providing valuable education and guidance to individuals interested in investing in the market. This is also our effort on the financial inclusion drive of the wealth creation aspirations,” he said
Benedicto Nkhoma, a shareholder, said he has benefitted a lot from investing in the stock market for the last twenty years of investment.
He said the benefit has been in terms of capital appreciation and dividends.
“Stock market restores the value of your money. You can diversify in order to manage risks and be able to beat the economic shocks such as inflation, ” said Nkhoma
Misalico was established in 2017 and has been instrumental in assisting shareholders in their understanding of stock market operations.
