By Kingsley Jassi:
The first international stock exchange was launched on Friday in Lilongwe, promising to offer billions of dollars expected to bankroll the country’s long-awaited industrialisation drive.
Xidian International Stock Exchange from China is a stock market that is expected to offer Chinese investors a window to exploit investment opportunities in Malawi while exposing local investors to the Chinese financial market.
Investment areas such as agriculture, manufacturing, mining, tourism and infrastructure are among those that have already caught the attention of at least 20 Chinese investors that travelled to Malawi recently.
Upon picking investment projects in these sectors, the investors will aim to raise funds through the stock market, offering shares to financiers in China and around the world, including Malawi.
Chairperson for Xidian International Stock Exchange, Liao Jun Hua, said this would help address Malawi’s challenge of access to long-term financing as it offers companies in Malawi a gateway to the global financial market.
“I am pleased to announce that Xidian International Stock Exchange has already secured interest from a number of global companies, including leading Chinese firms in manufacturing, green energy, technology and infrastructure development,” Liao said.
Malawi Investment and Trade Centre Director General Kruger Phiri presented selected projects in mining, tourism, agriculture, manufacturing and infrastructure totalling over $8 billion but said a whole list exceeded $40 billion worth of investment opportunities.
In an interview, Reserve Bank of Malawi Director of Financial Markets- Regulation and Supervision Patrick Mhango said the central bank had given a provisional license and hoped to fully license the exchange this year with operations expected by August.
“If the exchange is to operate the way we expect, it will make a big impact on the local financial market. It is expected to attract foreign financing into the country for industrial projects,” he said.
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