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Escom named most profitable parastatal

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The Electricity Supply Corporation of Malawi (Escom) has topped the list of profitable parastatals in 2017.

This is according to the Malawi Government Economic report for 2017. The report shows that Escom posted an after-tax profit of K7.6 billion in 2016, down from K12.34 billion in 2015.

The profit fall in Escom, according to the report was largely due to a 45 percent jump in expenses from K43.03 billion to K62.5 billion. Escom is seconded by the Malawi Communications Regulatory Authority (Macra) on the list of profitable parastatals.

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Macra posted a surplus of K6.2 billion in 2016 down from K8.02 billion in 2015.

According to the report, despite a 14 percent jump in Macra income in 2016 to K15.9 billion, expenses skyrocketed by 45 percent to K9.7 billion.

Lilongwe Water Board (LWB) is third on the list, posting an after-tax profit of K2.753 billion in 2016 up from K1.914 billion in 2015.

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This was despite LWB registering a slow growth in revenue at 33 percent in 2016 compared to 80 percent recorded in 2015.

Similarly, water production volumes and water sales volumes both declined in 2016.

“The significant drop was largely on account of reduced rainfall and catchment degradation which necessitated implementation of water rationing programme in 2015/16 arising from reduced production capacity,” reads the report in part.

Next in the line of profitable parastatals is the Malawi Energy Regulatory Authority (Mera) which recorded an after-tax profit of K1.9 billion up from K1.37 billion.

Mera recorded total revenue amounting to K3.9 billion in 2016 which is 54 percent above the K2.5 billion recorded in 2015. However, expenses jumped 71 percent from K2.4 billion in 2015 to K4.1 billion.

At par with Mera in as far as 2016 profitability is concerned is the Technical Education and Vocational Training Authority (Teveta) which posted a net surplus of K1.9 billion.

Teveta recorded total revenue amounting to K6.2 billion up from K3.9 billion in 2015. During the same period, Teveta saw its expenses jumping 15 percent from K3.8 billion in 2015 to K4.3 billion in 2016.

Other profitable parastatals, according to the report, are the Southern Region Water Board, Central Region Water Board, Northern Region Water Board, Malawi Housing Corporation, Malawi Post Corporation, Pharmacy, Medicines and Poisons Board, Lilongwe Handling Company, Airport Development Limited, Malawi Bureau of Standards and Malawi Gaming Board.

During the 2015/16 financial year, a number of parastatals recorded losses. Among the notable firms that posted losses are Blantyre Water Board, Malawi Enterprise Development Fund, Malawi Institute of Management and the National Food Reserve Agency.

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