By Kingsley Jassi:
The government has rejected calls to reduce its 71 percent shareholding in Sunbird Hotels Limited, despite pressure from minority shareholders seeking greater public participation in the profitable hotel chain.
Press Corporation Limited holds 15 percent of the company while the remaining 14 percent is publicly traded.
Finance Minister Joseph Mwanamvekha told journalists in Lilongwe on Friday the government’s position was non-negotiable, dismissing a request from the Minority Shareholders Association of Listed Companies (Misalico) to release additional shares to the public.
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“You don’t sell a profitable business. We are keeping Sunbird because it is the company that makes us proud as government,” Mwanamvekha said.
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The hotel chain has rebounded strongly from pandemic-related losses that hit the hospitality sector hard.
Sunbird expects profits of between K13 billion and K15.1 billion in 2025, representing a 43 percent jump from the K10.6 billion recorded the previous year.
Misalico General Secretary Frank Harawa argued the government’s stance contradicts the original purpose of establishing the Malawi Stock Exchange through the Reserve Bank of Malawi—to enable citizens to own shares in state enterprises and create a capital market that generates investment resources.
“We are not saying government should release all the remaining shares in Sunbird but just to release some of them to allow more Malawians own that company, it is their company actually,” Harawa said.
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He said government’s reluctance to divest stakes in profitable entities undermines capital market growth. The exchange currently lists only 16 counters.
Misalico maintains that state-owned companies could benefit from listing on the local bourse through recapitalisation and improved financial inclusion.
MSE Chief Executive Officer John Kamanga recently said discussions were underway with some state-owned enterprises about potential listings.
“…however, we have noted poor financial records as a major barrier, with most parastatals operating at a loss. But some listing requirements have been relaxed to attract more entrants,” Kamanga said.
Besides Sunbird, government owns Umodzi Holdings Limited, which operates the Bingu International Convention Centre, President Hotel and Presidential Villas.
The company has also turned around its fortunes since taking over the businesses from Peermont.
Umodzi posted a K7 billion half-year profit by October, up from K3.4 billion in the financial year ending March 2025.
Both Sunbird and Umodzi are planning expansion investments and exploring financing options. Misalico and MSE argue the stock market has sufficient resources to fund the multimillion-dollar ventures.
