Mining
Stakeholders advocate for mining companies to list on local bourse
February 18, 2025 / Wahard Betha
Rashid: Listing on local stock exchange will have a significant impact
Stakeholders in the extractive sector say listing of both medium and large-scale mining companies on the Malawi Stock Exchange (MSE) can bring a positive impact to the country’s economy.
In an interview with Mining and Trade Review, Mining Expert Ignatius Kamwanje said listing the companies on MSE can bring ample benefits including generating foreign exchange.
Kamwanje said: “Registering companies on MSE will have economic impacts among them being that the profits will be shared locally which is to enhance money circulation hence opening up some businesses by local shareholders, the company portfolio shall also be strengthened attracting more people to invest in shares.
“Companies may be willing to register in stock exchange but that is subject to signing agreements with the government.” “It is hoped that government will provide flexible conditions or incentives otherwise it is not attractive for foreign companies to get listed locally.”
Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid also said registering the companies on local stock exchange could benefit Malawi in areas of revenue generation, local ownership, accountability and transparency and; growing the sector.
Rashid said: “Registering a mining company on a local stock exchange could have a very significant contribution to the economy.”
“The impacts include: increase in local ownership and wealth creation; development of capital markets in Malawi; revenue generation and growth of the economy and; transparency and accountability due to the reporting requirements to shareholders.”
“The listing of mining companies on the local stock exchange though risky has a potential of growing the mining sector in Malawi as this would remove the mistrust and confusion that had existed for a long time on how Malawi benefits from mining.”
He explained that some of the multinational mining companies would register on the local stock exchange for purposes of collaboration if well regulated, a development he described as a breakthrough for local involvement.
Coordinator for Chamber of Mines and Energy Grain Malunga said listing the companies on MSE will enable the local communities to purchase shares.
“Mining companies will one day register with local stock exchange if they pass the criteria required to register. Stock exchange is a vehicle for making money through buying of shares,” he said.
However, Mining Expert and Seasoned Geologist John Nkhoma said listing the mining companies on MSE can only be done once they kick-start the actual mining.
“I think this can only be done once the companies are in operation, however note that most of the other funding comes from external inputs and also that equipment can be purchased in forex not Malawi Kwacha,” he said.
In a virtual mining conference on mining investment with Malawians in diaspora, the Ministry of Mining Principal Secretary Joseph Mkandawire disclosed that all mining companies have agreed to be listed on MSE once they finalize Mining Development Agreements (MDA).
The move also excited Chief Operating Officer for MSE, Kalline Kondowe who lauded the development saying it will increase investment platforms on the local market. Meanwhile, no medium or large scale mining companies is registered on MSE.
Share this:
Leave a Comment
Comments
Mining & Trade Review News
Agribusiness News
Subscribe to Newsletter
Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
Archives
Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
Stakeholders Logos
