Minority shareholders, bridge to capital market—minister

Minister of Finance and Economic Affairs Sosten Gwengwe says minority shareholders can bridge the gap between ordinary citizens and the capital market to enhance renewed confidence in the Malawi Stock Exchange (MSE).

Speaking on Friday in Blantyre during the launch of Minority Shareholders Association of Listed Companies (Misalico), he called on the group to convince people to buy shares and participate on the 16-counter MSE.

Said Gwengwe: “We, therefore, implore upon Misalico to sustain their constructive activism so that we have a vibrant capital market.

“The scepticism that some Malawians have can be dealt with if there is fair and equitable distribution of profits.”

He said the stock market is a mirror that investors use to determine the stability of an economy to make informed investment decisions, which makes the capital market a catalyst for economic growth and wealth creation.

“Stock markets are only vibrant when there is high demand and supply,” said Gwengwe.

Figures show that there are huge balances of unclaimed dividends, and the minister asked Misalico to reach out to their members to claim their dividends.

Misalico president Mjedo Mkandawire said the group was formed to represent the interests of minority shareholders.

He said the group, formed in 2014 and registered in 2018, also wants to increase understanding of the capital market, particularly the stock market.

“We also want to ensure that minority shareholders make better investment decisions,” said Mkandawire.

First Capital Bank chairperson Hitesh Anadkat, who spoke in his personal capacity, called on the group to hold listed firms’ board of directors and management to account.

He urged the group to pick their battles, saying: “Don’t fight every battle, you will get tired”.

Anadkat urged the group to always put dialogue first and ensure self-respect and mature interaction.

“Don’t beat us up on minor elements. You should ask challenging questions and take us to task,” he said.

MSE chief executive officer John Kamanga said minority shareholders play a critical role in the operations of the stock market.

He said as minority shareholders, they have no right to confront firms’ management and board of directors.

Public Private Partnership Commission chief executive officer Patrick Kabambe asked the minority shareholders to be more relevant and impactful.

“We need to change the image of the association,” he said. n