After-tax profit for development finance institution, the Malawi Agricultural and Industrial Investment Corporation plc (Maiic), surged by 92 percent in 2021, as the firm grew its clients in the third year of its operations.
In its audited financial statement for 2021 released today, MaiIc says it posted a profit after tax of K537 million up from K280 million in 2020.
The firm says, in 2021, it saw its loan book growing by 43 percent, from K2 billion in 2020 to K2.9 billion on December 31 2021.
The financial statement, signed by directors Donbell Mandala and Taz Chaponda, says Maiic saw its total income increasing by 52 percent while total expenditure increased by 40 percent.
“The operating environment during the year was characterised by the Covid-19 pandemic whose effects subdued economic activity. This affected the company’s lending, especially in the tourism sector.
“Notwithstanding, the company consolidated its establishment and registered good business growth,” reads the financial statement.
Looking ahead, the firm says despite the prevailing challenging business environment, the company’s progress continues to gain momentum, with the outlook for the 2022 financial year generally looking positive.
“As the Covid pandemic abates, the business climate is anticipated to improve, particularly in investor sentiment, which should buoy the company’s ability to mobilise patient capital for investment in transformative projects,” the statement says.
In an interview Thursday, Chaponda said it was crucial for Malawians to appreciate the impact that Maiic is having on the growth of SMEs in Malawi.
According to Chaponda, the DFI has already helped about 44 SMEs boost their productive capacities in sectors of the economy such as tourism, agroprocessing, energy and farming.
Maiic was incorporated on November 23 2018 as a public limited liability company to bridge the long-term financing gap in Malawi and spearhead private sector development.