Overview

Malawi's capital market has its roots in the early nineties, stemming from the enactment of the Capital Market Development Act of 1990, which laid the foundation for the establishment of an equity market. In 1992, capital market development regulations were put into effect to operationalize the provisions of the Act. The Malawi Stock Exchange (MSE) was formally established in 1994, and equity trading commenced in November 1996, with the listing of the first company, National Insurance Company Limited (NICO). Prior to this, the primary activities of the Exchange revolved around providing a platform for secondary market trading in government of Malawi treasury bills and locally registered stocks.

The Securities Act of 2010 superseded the Capital Market Development Act of 1990, assuming the role of regulating capital and securities markets, as well as individuals engaged in transactions within these markets.

Over the years, the number of listed companies has increased, as has the presence of intermediaries within the capital and securities markets. These intermediaries encompass securities exchanges, stock brokers/dealers, transfer secretaries, central securities depositories, portfolio managers, collective investment schemes, and investment advisors. Collectively, these intermediaries offer a diverse array of capital and securities market products and services