Malawi Stock Exchange (MSE) chief executive officer John Kamanga says all the six small and medium enterprises (SMEs) that graduated from Nzinga Incubation Programme last year are interested to list on the 16-counter market.
He said in an interview on Tuesday at a time they are calling for a second cohort of SMEs to undergo an 18-month mentorship and capacity-building programme designed to prepare them for growth and to list on the local bourse.
historic step. | Nation
Kamanga said Nzinga Incubation Programme, launched on July 28 2023, has proven to be a historic step in nurturing the next generation of high-potential enterprises and deepening Malawi’s capital market ecosystem.
The six companies that benefited in the first cohort are Agro-Input Suppliers Limited, Combine Cargo Limited, Nagowa Finance Limited, Unified Technologies Limited, Wealthnet Finance and Ziweto Enterprises Limited.
Said Kamanga: “All the six companies are actually interested to list. We cannot provide the timeframe, but after they got the necessary mentorship and capital-raising opportunities, they are determined to grow their businesses through listing.
“Actually Ziweto Enterprises Limited raised capital from Mauritius Stock Exchange and that alone is encouraging even though the capital-raising was not necessarily through MSE.”
In a joint statement on Tuesday, the MSE and the World Bank-funded Financial Inclusion and Entrepreneurship Scaling (Fines) project said the second cohort will enable six SMEs to build capacity of their businesses, structuring and packaging the business as a bankable project, among others.
Reads the statement in part: “It will enable them to access technical support and guidance within the capital markets ecosystem.
“Enrollment into the programme provides a structured path towards listing on the exchange, which will enable the business to raise equity capital.”
One of the graduates, Frederick Kawalewale who is Agro-Input Suppliers Limited director and chief executive officer, said the incubation experience positioned his company to scale technologies that will transform agricultural productivity.
He said his firm joined the programme to access capital and develop a go-to-market strategy.
“Our smart soil testing technology will be rolled out in December to help farmers analyse their soils on-site and make informed fertiliser decisions,” he said.
Fines project manager Ralph Tseka said the project played a central role in financing the Nzinga initiative to address the persistent lack of capital among SMEs.
“One of the major challenges SMEs face is the lack of capital. To address this, there is a need for access to more capital, which can be achieved by listing on the stock exchange,” he said.
The Nzinga Incubation Programme provides mentorship, business and financial management training and corporate governance support to position enterprises for sustainable growth and long-term financing through the capital market.
The programme was launched by MSE on July 28 2023, with the first cohort comprising six companies drawn from diverse sectors, including agriculture, technology and manufacturing.
According to MSE’s call for applications for second cohort, some of the requirements for successful ventures include a minimum capital of K250 million, audited accounts for the immediate past one year, no profit history and K750 000 contributory fee.
