Following a growing number of questions from readers about how to begin investing on the Malawi Stock Exchange (MSE), this column offers a simplified guide based on the official five-step process from the MSE—explained in plain language for first-time investors.
With the market up over 85 percent in the first half of 2025 and banking stocks delivering triple-digit gains, it’s no wonder interest is rising. With interest rates hovering at above 30 percent for most of the year, transferring one’s funds from a checking account from a savings account, where they will earn around 11 percent per year, into shares could be a smart idea. But what’s the safest way to start?
Let’s break it down.
Step One: Choose a Broker
You can’t buy or sell shares directly on the MSE. You need to go through a licensed stockbroker. Think of them as your personal link to the market. They place trades, explain what’s happening, and help you make smart choices.
Start by calling or visiting a few brokers. Ask what services they offer, how much they charge, and whether they support new investors. Some offer detailed advice; others expect you to make your own calls. Find one that suits your needs and communication style.
Step Two: Define Your Investment Goal
Before you invest a single kwacha, ask yourself why you’re doing it.
Is it to protect your savings from inflation? Build wealth for retirement? Save for your child’s education? Your goals will shape your investment approach. Some companies offer regular dividend payments. Others may not pay out, but their value could rise significantly over time.
Your broker can help match your objective with suitable shares. If you want steady income, dividend stocks may work better. If you’re aiming for long-term gains, focus on growth companies.
Step Three: Place Your Order—Buying Shares Made Simple
Once you know what you want, your broker helps you place an order. You’ll need to decide how much to invest, how many shares to buy, and the price you’re willing to pay.
For example, if a share trades at K100 and you have K50 000, you could buy 500 shares—minus brokerage fees. Your broker handles the paperwork, confirms the trade, and sends you a statement once the deal is done.
Many brokers also offer online platforms, and a mobile trading service is on the way—making this step even easier.
Step Four: Make It a Habit—Invest Regularly
Investing isn’t just for the wealthy. You can start small—K25 000 here, K50 000 there. The key is to build the habit. This is known as accumulation investing.
Over time, small but regular investments can build up into a meaningful portfolio. Reinvest dividends, top up when you can, and avoid trying to “time” the market. Think of it as saving—but smarter.
Step Five: Monitor Your Progress — Stay Informed
Once you’ve invested, don’t go silent. Follow your shares in the business section of the newspaper or on the MSE website. Talk to your broker now and then. Track company updates. This helps you know when to hold or sell, and whether your goals are still on track.
Being informed builds confidence—and helps you avoid emotional decisions during market swings.
You don’t need a finance degree or millions of kwacha to start investing on the MSE. What you need is a plan, a broker you trust, and a willingness to learn. The market won’t rise forever, but it’s already shown that it can reward patient, disciplined investors.
With inflation still high, doing nothing with your savings may be the riskiest move of all. Investing on the MSE could be your path to long-term value.
Sometimes, the smartest way to save—is to invest.
