The Reserve Bank of Malawi’s subsidiary, Export Development Fund (EDF), posted a profit after tax of K20.4 billion in 2022, a published financial statement has shown.
This represents a 920 percent increase in the profit when compared to a K2 billion profit registered in 2021.
According to the statement, the performance was derived from non-operating income of K 21.5 billion.
“Total revenues from operations grew by 24.3 percent from K10.9 billion in 2021 to K13.6 billion in 2022. This revenue increase was driven by growth in both interest income and a one-off non-interest income,” the report reads.
EDF Chairperson Neil Nyirongo said the operating environment proved to be largely unstable, with adverse weather conditions materially affecting crop production and, thus domestic economic growth in Malawi’s predominantly agriculture-based economy.
He added that global economic volatility caused by the disruptions from the Russia-Ukraine war significantly undermined the projected economic rebound from the effects of the Covid pandemic.
“Given the performance of the fund, our resilience and strategic positioning within the market reflects our commitment to sustainable growth and financial sustainability whilst contributing to the sustainable development and growth of the country’s exports.
“EDF continues to focus on enhancing its operational efficiencies, cost management and prudential risk mitigation whilst still actively identifying and capitalising on promising investment opportunities that can contribute to the overall socio-economic developmen t of Malawi,” Nyirongo said.
