Malawi’s State-Owned Enterprises Now Turning Profits, Boosting Economy

Malawi’s state-owned enterprises (SOEs) have turned the tide and are now generating profits—a development expected to fuel significant economic growth for the nation.

The revelation came from Minister of Finance and Economic Affairs, Simplex Chithyola Banda, during the signing of the 2025/2026 Shareholder’s Letters of Expectations between the government and SOEs.

“Some institutions are now performing well and paying dividends. The better they perform, the easier it becomes for them to access funding from my ministry. We are running a ‘Performance for Results’ program, which rewards efficiency and excellence,” said Banda.

The Minister attributed this turnaround to a strategic incentive approach, encouraging underperforming SOEs to step up.

“We are incentivizing those who perform. Those lagging behind need to pull up their socks so that next year, they too can be rewarded and appreciated,” he said.

Banda emphasized that this initiative will strengthen accountability and align SOEs with Malawi’s 2063 development goals.

Peter Simbani, Comptroller of Statutory Corporations, underscored the importance of tracking performance, ensuring that SOEs meet expectations in terms of revenue, expenditure, and dividends.

“Our office will monitor the implementation of key performance indicators (KPIs) to ensure SOEs deliver on their commitments. Treasury will hold them accountable to these targets,” said Simbani.

With SOEs now contributing dividends to the government, hopes are high that this financial breakthrough will bolster national development and set a new standard of efficiency in Malawi’s public sector.