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Malawi Stock Exchange (MSE) chief executive officer John Kamanga says the Mzinga Incubation Programme is a historic step in nurturing the next generation of high-potential enterprises and deepening Malawi’s capital market ecosystem. He said this on Thursday in Blantyre during the graduation of the first cohort under the Mzinga Incubation Programme, marking a key milestone in efforts to enhance access to affordable and patient capital for small and medium enterprises (SMEs). He said: “The Mzinga programme bridges the gap between enterprise incubation and investment readiness. “We must empower start-ups and SMEs as engines for job creation and inclusive growth, enabling them to access structured financing through the capital market.” He said the 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. Reserve Bank of Malawi (RBM) Deputy Governor for economics and regulation Kisu Simwaka hailed the programme for tackling long-standing challenges that have limited SME participation on the stock exchange. He said: “For several years, we have had only 16 companies listed on the Malawi Stock Exchange, with no growth in numbers. “This programme aims to prepare participating institutions to meet listing requirements and effectively engage with investors, ultimately increasing their chances of successful listing and growth on the exchange.” Simwaka said RBM is enhancing its regulatory framework and introducing new financial products and digitalised systems to improve market efficiency and attract more investors. On his part, Financial Inclusion and Entrepreneurship Scaling (Fines) project manager Ralph Tseka said his project played a central role in financing the Mzinga initiative to address the persistent lack of capital among SMEs. He said: “One of the major challenges SMEs face is a 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.” MSE board chairperson James Kamwachale Khomba said the programme integrates innovation, research and commercialisation, helping entrepreneurs adapt to changing market conditions and operate sustainably. He said: “The programme is designed to be versatile, focusing on training and upgrading small and medium entrepreneurs. “Our goal is to equip entrepreneurs with the necessary skills and knowledge, which they have now acquired upon graduation.” 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 patient 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. Following the graduation, Kawalewale said Agro-Input Suppliers Limited is ready to list on the MSE. “We have developed our roadmap towards listing. We will begin with private equity and then move on to the listing through the initial public offering,” he said. The Mzinga Incubation 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. MSE plans to launch a second cohort with continued support from the RBM and the World Bank-funded Fines Project.
