AHL Group assures MPs on its future
AHL Group has assured Parliament that the company has taken corrective measures to ensure its financial health and business survival following a record K44 billion loss it registered in 2016.
Speaking when officials from the company appeared before the Budget and Finance Committee of Parliament on Thursday, AHL Group Head of Risk and Compliance, Madalitso Njerenje, said the opening of 2018 Tobacco Marketing Season was a clear sign of revival at the company.
She said the group was restructuring its loans and recapitalising its troubled subsidiaries such as Malawi Leaf the rejuvenate its business.
“What we can assure Parliament and all our stakeholders is that the company is around and very much in business. We have moved way ahead of the loss in 2016,” said Njerenje.
Deputy chair for the Budget and Finance Committee John Chikalimba called on AHL Group to explore more measures to address issues that led to the loss in 2016.
She however asked government to review the commission the company earns on tobacco, saying some of the financial problems started when government reduced AHL commission from 3.95% to 2.50 in 2004.
She said instead of hipping the entire commission on growers, it could be shared with buyers who current don’t pay anything for using the auction floors.
He said AHL Group was of significant importance to Malawi’s economy and that it should not be allowed to collapse.Follow and Subscribe Nyasa TV :
The record MK44 billion should be a trigger for review of business model otherwise HAL will wipe out it’s equity within the next 2-3 years. The current business model is antiquated and not workable in the 21st century. Trade has evolved globally with a number of small and digitally savvy players entering the market. AHL operating model needs an urgent revamp. It’s cost structure is quite heavy so requires a relook. Just bandaging the wound won’t do any favours for the company. Expand AHL products and service offering tominclude non-traditional revenue streams. Just a few thoughts. Wakutsina khutu ndi m’nansi.
THE LOSSES THE COMPANY IS
TALKING ABOUT COULD NOT
HAPPEN WHEN THE MAN (NGWAZI )MHSRIP
WAS ALIVE !!
WHY ?? IT WAS SERIOUS BUSINESS
EVERYWHERE BY EVERY
NOW ?? IT’S JOKES EVERYWHERE
LIKE PEOPLE COMING TO
WORK LATE; HAVING SEXUAL
INTERCOUSE IN OFFICES
;CORRUPTION AND THE
WE NEED REVOLUTION / EVANGELISATION /CHANGE !!
A very comprehensive analysis of this venture as well as ACE has been done by Aicc. The future of Ahl group is just bleak