Malawi Agricultural and Industrial I n v e s t m e n t Corporation plc (MAIIC)’s profit for the year ended December 31 2023 significantly increased, despite a subdued economic environment, published statements show.
MAIIC’s profit after tax went up by 249 percent to K2.52 billion in the year-ended December 2023, from K722 million in the corresponding period in 2022.
Published summary financial statements further show that total assets grew by 55 percent to K29.2 billion in 2023 from K18.8 billion recorded in 2022. Total income increased by 94 percent on account of growth in loans, advances and investments.
“During the year, the company consolidated its lending operations, growing the loan book by 31 percent from K4 billion the previous year to K5.3 billion at end December 2023,” the statement reads.
MAIIC Board Chairman Donbell Mandala said the corporation operated in a challenging economic environment witnessed by supply chain disruptions caused by the Russian- Ukraine war fueling inflationary pressures, and the chronic unavailability of foreign currency even after the 44 percent devaluation of the Kwacha in November 2023.
“The corporation expects macroeconomic stability to be a top agenda of both fiscal and monetary authorities in 2024 despite the challenges faced in 2023. As a corporation, we remain vigilant in monitoring and managing risks related to our business. We also remain committed to ensuring customer satisfaction. In order to improve customer satisfaction and improve efficiencies,” Mandala said.
Acting Chief Executive Officer of MAIIC, Lloyd Banda, indicated that growth in the corporation’s profitability is attributed to the overall growth in the corporation’s balance sheet that significantly moved to K29 billion.
“Among others, the corporation registered growth in loans and advances including the (equity portfolio) that resulted in growth in interest income and the corresponding processing and other fees. Furthermore, earnings made through foreign currency dealings and the company’s overall effective risk management contributed to the growth,” Banda said.
He added that the company is focusing on maintaining the positive momentum in the year 2024 and beyond through further growth in the company’s profitability, balance sheet size and shareholder’s return on equity.
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.
