By Dean Chisambo
The Malawi Investment and Trade Centre (MITC) has unveiled the first foreign-based Chinese stock exchange company in the country, known as Xidian International Stock Exchange, which is expected to boost economic growth and increase foreign exchange reserves.
Speaking during the official launch of the Xidian International Stock Exchange in Lilongwe, MITC Director General Kruger Phiri described the development as a major milestone for Malawi, the first of its kind since the establishment of the Malawi Stock Exchange in 1995.
Phiri emphasized that the establishment of an international stock exchange will bring in significant foreign investments, particularly in foreign currency, which is more beneficial than relying solely on the Malawi Kwacha.
He noted that for the past 60 years, Malawi has struggled with access to robust capital markets. The arrival of the international stock exchange, he said, will help ensure the availability of foreign currency and provide an alternative investment platform.
“This is not about competing with the Malawi Stock Exchange,” Phiri clarified. “Rather, this is about complementing it by promoting foreign currency trading in Malawi.”
He further highlighted the positive track record of Chinese investors in Malawi, stating that they are not strangers to the country. “They have already contributed to several development initiatives, and their continued interest shows their commitment to massive investment in Malawi,” he said.
On his part, Xidian International Stock Exchange Chairperson Liao Jun Hua disclosed that nearly 20 Chinese companies have already expressed interest in investing through the platform.
Meanwhile, Patrick Mhango, Executive Director for Regulation at the Reserve Bank of Malawi (RBM), welcomed the development, stating that the new international stock exchange will attract more foreign investors and boost foreign direct investment (FDI).
Mhango added that the Xidian International Stock Exchange will help stabilize Malawi’s foreign exchange market by introducing hard currencies such as the Chinese Yuan, US Dollar, Euro, and British Pound into the economy.
According to MITC, Xidian International Stock Exchange has already injected USD 100 million into the initiative—a move seen as a significant and welcome boost to Malawi’s financial sector.
