Oct 19, 2017 Last Updated 2:12 PM, Oct 18, 2017
×

Warning

JFile: :read: Unable to open file:

The Chief Executive of FDH Holdings is not coming out clearly on whether their concerns over the purchase of Malawi Savings Bank raised to the government, have been addressed.

Early this year the group’s CEO Thomson Mpinganjira expressed concern that Capital Hill was not completely honest in the MSB deal, as they felt it was undervalued.

When he made an announcement on the completion of the capitalisation of the merged banks, Mpinganjira said they were shocked because they ended up injecting close to 12 billion to get the institution back on its feet.

Following such a concern, the team went into discussions with the Treasury, of which both sides confirmed.

Six months down the line, however, both sides are refusing to comment on the matter, keeping the public in the dark on whether or not a compromise was reached.

When contacted by Capital FM, Mpinganjira said he “does not want to comment on the issue publicly”.

Treasury officials have also remained tight lipped on the issue.

FDH Financial Holdings Limited (FDH) is a diversified investments and financial solutions centre with interests in Banking, Discount House Operations, Investment Management and Advisory Services as well as Forex Bureau operations.

 FDH prides itself in the quality of its services, which has created a formidable reputation for itself in all its business arms. 

RBM Maintains Policy Rate

The Reserve Bank of Malawi (RBM) has resolved to maintain the policy rate at eighteen percent.

This is the rate that is used by the central bank to implement or signal its monetary policy stance.

The monetary policy committee met last month to make a decision on the matter, following a similar meeting held in June this year.

The June meeting recommended a slash in the base rate from 22 percent to 18 percent, thereby pushing commercial banks to reduce their interest rates.

RBM Governor Dalitso Kabambe, who is also Chairman of the monetary policy committee, said the decision to maintain the policy rate will help, consolidate economic gains and help maintain the single digit inflation rate.

According to NSO, the current inflation rate indicates a decline of 0.9 percent from the month of July, 2017.

The urban and rural rates stand at 8.9 percent and 9.8 percent respectively. Overall, food inflation stands at 6.2 percent from 7.4 percent in July 2017 while non-food inflation stands at 12.2 percent from 12.7 percent in July 2017.

This year, Malawi produced more than 30 percent surplus in maize owing to good climatic conditions after two successive years of low output due to drought and floods.

NSO figures released show that August inflation rate has eased by 0.9 percentage points from July’s 10.2 percent.

During the same period last year, inflation was at 22.8 percent, and this shows that prices of goods and services have increased at a much more reduced rate.

Tax rates in Malawi are lower than in most of the countries in southern Africa.

This is according to the Malawi Revenue Authority (MRA).

The Head of Corporate Affairs, Steve Kapoloma made these remarks in an interview with the Malawi News Agency, in reaction to widespread concerns from the public that the revenue collecting agency is overtaxing Malawians.

Kapoloma explained that a study conducted by the International Monetary Fund-IMF, comparing Malawi and countries within the region like Mozambique, Zambia, Zimbabwe and Kenya among others, finds that the taxes in Malawi are sometimes lower.

For instance, Malawians pay 30% of their monthly income for Pay as You Earn (PAYE), while people in South Africa pay 41%, Zimbabweans 50 and Mozambicans 32.

According to Kapoloma, only Tanzania equals Malawi at 30 percent.

He warned that MRA would deal with any type of tax evasion in the country to make sure that the body meets its goals.

Press Corporation Limited is still working on closing a deal with a potential strategic partner for its new infrastructure company, Open Connect Limited (OCL).

OCL was formed following the unbundling of their telecommunications subsidiary MTL which was manning both infrastructure and telephony businesses.

The tasks were said to have been burdening MTL, affecting the efficiency of the business in the process.

According to representatives of the conglomerate, OCL, which is now operational and responsible for fibre optic management for the company and wholesale of bandwidth, still needs a strategic investment partner.

An inside source has told Capital FM that despite OCL being operational, that there is a company which is in negotiations with PCL on the partnership.

According to the source, the two parties have been advised not to divulge any information until a deal is closed.

One of the objectives of the establishment of the sister company to MTL, is to make the telecommunications firm more profitable as it was making worrying losses for the group.

Press Corporation Limited is a public listed company incorporated in Malawi, under the Companies Act 1984; and is quoted on the Malawi Stock Exchange and is listed as a global depository receipt on the London Stock Exchange.

Property development Company MPICO is boasting of an improved performance since its Rights Issue.

MPICO’s unaudited Financial Results Report indicates that the Company has post an after tax profit of MK2.7 Billion in the first half of the year, up from the MK700 Million which was registered during the same period last year.

The property company issued rights to the public and shareholders last year in a bid to raise capital, a development which resulted in MK9 Billion  being raised.

At its 43rd Annual General Meeting in 2016, MPICO shareholders authorised an increase in the share capital from MK60 Million to MK150 Million representing 3 billion ordinary shares at 5 tambala each.

Board chairperson of the Company Edith Jiya says they are working on strategies that would ensure sustainability of the good performance in the remaining half of the year.

Meanwhile, the Share Price on the MPICO counter at the Stock Exchange remains steady at MK15 per share.

MPICO was incorporated on the 12 August, 1972 with a nominal capital of MK4m by Capital City Development Corporation, a parastatal established with the objective of attracting international and Malawian based commercial investment in the development of Malawi’s new Capital City, Lilongwe, in accordance with the Capital city Construction Act of 1968.

While CCDC concentrated on fabricating infrastructure for the new Capital City, low cost shelter, government offices and housing, MPICO concentrated on building private sector offices, housing, shops, factories, hotels, warehousing e.tc with the assistance of private sector capital.

MPICO incorporated subsidiary companies to suit the needs of particular investors and development projects.

By 1979 the MPICO group comprised 18 companies, 400 residential units, 2 hotels, 11 industrial units and a number of other properties with funds utilized or available of over MK29m, involving 59 investors other than CCDC.

Page 1 of 4

Capital Tweets

Any data to display

Find Us on Facebook