Some entrepreneurs and business students say local financial company, FDH Financial Holdings is showing the way for many aspiring players in the business sector that Malawian are capable of running complicated businesses and achieve profitability level.
The FDH Group comprise FDH Stockbrokers, First Discount House and FDH Bank respectively dealing in buying and selling shares at the Malawi Stock Exchange, money instruments, securities and commercial banking.
FDH Financial Holdings is led by highly qualified business magnate Thomson Mpinganjira who is also group chief executive officer and its half-year profits ending June 2014 have just shot by 169 percent.
Ken Juma who is pursuing Business Studies in Mzuzu said progress being recorded by the company defies perception that Malawians lack business acumen to drive their organisations into profit making entities.
“FDH Financial Holdings can even make a good case study for our courses and even for IMF and World Bank to appreciate that the country has dedicated people, like Mr Mpinganjira, with abilities to guide firms in complex industries such as finance into profit making,” said Juma.
First Discount House came through strong earning an after-tax profit of K389 million which is 76 percent above its June 2013 results and FDH Bank registered a profit after-tax growth by 206 percent to hit K888 million.
An entrepreneur, Mwayi Banda, of Lilongwe said the FDH Group has entrusted all senior roles to Malawians giving the public confidence that subsidiaries in the group offer realistic and locally generated solutions to finances.
“This is Malawi and for people to be relevant in their companies they must engage fellow citizens, this is what FDH is doing and in that course grooming determined capable leaders. That is why they have still managed growth despite operating in an environment characterized by a slowdown in economic activity, high interest rates, changes in the exchange rate as well as regulatory changes,” Banda said.
Mpinganjira emphasized FDH is concentrating on more positive results in the second half and attributed its success to its customers, shareholders, management and staff, as well as the Malawi Government and the Reserve Bank of Malawi.
“Interest rates are now on a downward trend with inflation following a similar trend. We therefore expect performance to be positive in the second half,” said Mpinganjira.
SMEs groups of Economic Empowerment Action Group, Indigenous Business Persons Association of Malawi, Small and Medium Enterprises Association have also commended FDH’s feat in financial sector and urged authorities to support local companies with business a development which has potential to create job opportunities for Malawians, save and retain money used to pay international experts and shareholders.
FDH Bank is among the top five banks with respect to market share for deposits despite being in operation for only six years. Mpinganjira holds majority shares in the FDH Group of companies.
Other subsidiaries are FDH Money Bureau Limited and FDH Advisory Services.Follow and Subscribe Nyasa TV :