Category: Business

National Bank of Malawi (NBM) plc says it is excited to retain the Best Digital Bank award for the third consecutive year in its quest to offer meaningful, accessible, and inclusive financial solutions to Malawians.

The Bank’s mobile banking platform, Mo626 Digital+ was named Best Digital Banking Solution at this year’s ICT Association of Malawi (ICTAM) Corporate Awards at the Bingu International Convention Centre (BICC) in Lilongwe.

NBM plc Head of Digital Financial Services, William Kaunda, said the Bank is both honoured and challenged by the recognition.

“To be recognised at national level for the third time in a row has really excited us. It affirms that the Bank is effectively leveraging the digital environment to deliver value to customers and communities,” explained Kaunda.

He said the recognition is also a call for the Bank to raise the bar in delivering digital services that meet customer needs.

“The award has cemented our deserved position of being the best Bank in the digital space, and that challenges us to come up with further innovations that address customers’ needs so that they can continue to enjoy the best from the best,” said Kaunda.

Kaunda attributed the platform’s success to its user-friendly design, wide range of services, and focus on community relevance.

“We believe that the ease of use, the richness of the service portfolio, and a design grounded in community needs propelled us to this position. Our platforms are deeply entrenched in our communities and promote both digital and financial inclusion,” he added.

At the event, NBM plc also received a Certificate of Recognition for its contribution to the country’s ICT ecosystem.

The certificate highlights the Bank’s consistent participation, active leadership, and commitment to sustainable digital growth.

Other awards included ICT firm of the year given to PayChangu, Old Mutual was named the best in Digital Insurance, while the Internet Connectivity Award went to TNM.

Digital Public Service Award was given to Msonkho Online by Malawi Revenue Authority (MRA), while Airtel Money was the best e-commerce Platform of the Year

NBS Bank plc Chief Executive Officer (CEO) Temwani Simwaka has attributed the Bank’s remarkable 2024 financial performance to continued investments in key sectors such as food and agribusiness, corporate and investment banking, and innovation.

Simwaka spoke during a stakeholders’ engagement in Blantyre on Friday, where she explained to journalists and stakeholders the Bank’s strategies for maintaining momentum.

NBS Bank announced an increase in its profit after tax of K72.99 billion for the year ending 31 December 2024 up by 145% from K29 billion profit after tax in 2023.

“Looking at the Malawi economy, yes, the inflation and interest rates are high, the cost of doing business is also high; however, from the positive side of the economy, we are looking at the opportunities in the agriculture sector and also the Agro-processing sector. As a Bank, we made a major investment in the core banking system and also in the digital platforms.”

“So, with that, the Bank is set to drive growth in the economy, but also transact cheaply and easily, making it simple for our customers. One of the key areas we invested in is the digital loan for our customers, especially those on salary, which enables them to borrow in less than five minutes without coming to the Bank,” said Simwaka.

Responding to shareholders’ concerns about the Bank’s excessive lending to the government, Simwaka said that NBS Bank plc has raised its capital limits to mitigate the risk of default by the government and other borrowers from the Bank.

“Banking is about how to take a risk and mitigate it. So, as a Bank, we are open to supporting the government, at the same time, at NBS Bank, we do a capital reservation whereby we internally raise our capital limits to take advantage of not just the risk of default by the government but also other people who borrow from the Bank,” said Simwaka.

Shareholder Bernadicto Bena Nkhoma applauded the Bank’s performance.

“The Bank has taken off, it’s a great performance, and as a shareholder and indeed any other stakeholder, I see a future in this Bank, and it will continue to grow, making a lot of strides,” said Nkhoma.

National Bank of Malawi (NBM) plc has set aside the month of June to celebrate Small and Medium-sized Enterprises (SMEs) as the backbone of the country’s economy.

During the month, the Bank, led by its Chief Executive Officer (CEO) Harold Jiya and Heads of Divisions, will visit selected SMEs across the country as a way of strengthening relationships through direct engagement and gaining a better understanding of their needs.

NBM plc’s Marketing and Corporate Affairs Manager, Akossa Hiwa, said the ‘Bank of the Nation’ plans to recognize its SME banking customers for their contributions to employment, innovation, and economic growth as the world commemorates SME Day on June 27.

“As a key financial partner for SME’s, we plan to actively participate in this year’s SME Day celebration by implementing meaningful activities that honour our SME customers and strengthen our relationship throughout the month,” said Hiwa.

The celebration, centers on this year’s theme ‘Business for MSMEs: Connecting the Entrepreneurs’, and will culminate on June 27 with an SMEs market day, where over 50 entrepreneurs are expected to showcase their products.

Two weeks ago, NBM plc also sponsored 50 SMEs with K10 million to participate at the country’s International Trade Fair in Blantyre.

Status Furniture and Office Supplies Founder Mike Siliya expressed gratitude to NBM plc for continuously supporting its SME customers.

“Every entrepreneur needs to have a strategic partner, and National Bank of Malawi plc has proved to be the right partner. We have accessed several banking facilities, short-term loans, long-term loans, overdrafts, and referencing to bids, which is what you need from a partner to prosper,” said Siliya.

National Bank of Malawi (NBM) plc has given K20 million to ICT Association of Malawi (ICTAM) for their 2025 Expo and Corporate Awards set for this weekend in Lilongwe.

Speaking after presenting the cheque on Monday, NBM plc’s Head of Information Technology, Organization and Methods (ITOM) Division, Christopher Chilenga, said sponsoring ICTAM is more than just branding and visibility, but strengthening the Bank’s position as Malawi’s leading digital bank by engaging directly with forward-thinking innovators.

“The theme ‘Accelerating Malawi’s Digital Economy: Innovation, Inclusion, and Sustainable Growth’ could not be more aligned with our mission as a Bank. Our corporate strategy strongly prioritizes digital transformation and financial inclusion, and this platform allows us to demonstrate that commitment in action.”

“This Platinum Sponsorship is valued at K20 million, and we believe it represents an investment in the future of innovation, entrepreneurship, and national progress,” said Chilenga.

In his remarks, ICTAM president Clarence Gama thanked National Bank of Malawi plc for the kind gesture saying the ‘Bank of the Nation’ has been a trusted partner for many years.

“When you see corporates like National Bank of Malawi plc joining this cause to spread news around technology as ICTAM, we feel that we are doing the right thing to change people’s lives here in Malawi through technology.”

“The economy is struggling, everybody can see, that is why we thought coming together to discuss the economy as a theme, and inviting the Reserve Bank Governor as Guest of Honour will give participants room to discuss these matters at the expo,” said Gama.

NBM plc’s collaboration with ICTAM began in 2019 as a shared vision for technological advancement in Malawi and has since grown into a strategic partnership grounded in mutual purpose and national impact through initiatives like the Innovation Jam.

Old Mutual (Malawi) Limited, one of the the leading financial service providers in Malawi has stressed the need to position financial inclusion in the country’s efforts aiming at achieving financial transformation.

This was stated by Old Mutual Marketing and Corporate Affairs Executive Patience Chatsika at the wrap of the 35th Malawi International Trade Fair (MITF) which took place from 22 to 29 May at the Chichiri Trade Fair Grounds in Blantyre.

Chatsika said Old Mutual will continue to champion the provision of free financial education to all Malawians and the distribution of innovative retail products that will propel accessibility and affordability of financial products.

She said financially educated individuals including SMEs are more likely to use financial products and services such as savings, credit, insurance, and payment systems that are key to economic transformation.

“At our stand this year, we actively promoted two savings products, Phuka Digital Savings and Mpamba Fesa, which are accessible digitally and affordable which do contribute to the financial inclusion which we also promote as a business.

“The Trade Fair is one of the many platforms that we use to engage with the public and showcase our products. Our main channel remains educating the public through our tailored financial education program called On The Money.

“The module is designed to foster financial literacy and inclusion. Through this we have engaged all kinds of people bringing financial wellness initiatives close to them to enable them make informed financial decisions” she said.

Chatsika further said Old Mutual will continue to collaborate with the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) in efforts to achieve full economic transformation in the country.

The 35th Malawi International Trade Fair (MITF) offered businesses an opportunity to showcase business innovation, exhibitions, and global networking opportunities. The theme for this year’s fair was “Promoting Economic Transformation through Private sector-led industrialization”.

United General Insurance (UGI) Chief Executive Officer Grant Mwenechanya says the insurance firm has set a clear and deliberate turn-around strategy focused on revenue growth, systems improvement, disciplined risk management, and long-term sustainability.

This follows a turnaround from a K653 million loss before tax in 2023 into a K3.0 billion profit before tax in 2024 according to financial statements the insurance company has released.

Mwenechanya said in an interview that the turn-around was made possible by the clean-up strategy focused on rebuilding the company’s foundation.

He said the company had been grappling with slow revenue growth, averaging just 8%, well below inflation, alongside rising claims, outdated IT systems, and a debtors’ book with payments outstanding for over 365 days.

“We had to make tough decisions in 2023, it was the year we addressed our weak spots, revamping claims management, upgrading our systems, and bringing our debtors under control. We did the groundwork so the business could recover properly,” said Mwenechanya.

Mwenechanya said by the end of 2023, revenue had grown by 25%, and the company had reduced outstanding debtors from over a year to under 90 days, marking a significant operational shift.

“The results of that clean-up became clear in 2024. Insurance revenue increased by 33%, claims dropped by 26%, and receivables were managed efficiently, with 100% of debtors brought within 30 days. UGI closed the year with a profit before tax of K3.0 billion, its strongest in recent years.”

“This turn-around did not happen by chance; it was a direct result of the structure and discipline we put in place. Everyone on the team worked hard and stayed focused,” said Mwenechanya.

As a subsidiary of National Bank of Malawi (NBM) plc, Mwenechanya also acknowledged the critical role played by NBM plc, in strengthening governance and enabling recovery.

“Being part of a highly regulated and respected financial group like NBM plc has its advantages. Our shareholders offered strong strategic guidance and provided capital support when we needed it. That backing helped create a strong and stable working environment,” he said.

Financial expert, Richard Tembo commended UGI for the remarkable turn-around strategy considering the turbulent economic challenges that Malawi faced in 2024, including the El Niño-induced climate shock that severely affected agricultural output, and rising inflation which closed the year at an average of 32.2%.

“The reversal in insurance service results—from a loss of K2.2 billion in 2023 to a positive K1.85 billion in 2024 suggests that UGI not only brought in more business but did so with underwriting discipline and improved claims management. Gains were also made in the investment income mainly due to the favourable returns in the money market,” said Tembo

Select Financial Services Limited has announced a remarkable K3.82 billion profit-after-tax for the financial year ending December 31, 2024, bouncing back from a significant loss of K2.63 billion in 2023.

The company is a limited liability credit provider primarily serving government employees who face challenges accessing credit from traditional banking institutions or formal financial services in Malawi.

According to the audited financial statements signed by Board Directors Daniel Dunga and Sean O’Sullivan, the remarkable recovery signifies a major milestone in the company’s operational journey and highlights the effectiveness of its strategic focus on digital transformation and rural outreach.

“The company reported a 42% growth in its gross loan book, rising from K22.3 billion to K31.6 billion. Total income surged by 36.1%, increasing from K11.85 billion to K16.12 billion, driven by expanded operations and disciplined cost management. The results speak to our ability to adapt, innovate and grow even in a challenging economic environment,” reads the statement in part.

Amid continued macroeconomic pressures from forex shortages, inflation, and the upcoming election, Select Financial Services says they are cautiously optimistic for the year 2025.

The company further said it will remain focused on serving the under-banked and is committed to financial inclusion through technology and grassroots presence.

In an interview, Select Financial Services Chief Executive Officer Akuzike Kafwamba said they have now opened a new regional office in Zomba to serve their clients better.

“The company has now established a new regional office in the Eastern Region in 2025, reinforcing our expansion strategy,” said Kafwamba.

Operating as a licensed Non-Deposit Taking Microfinance Institution (NDTI) under the Reserve Bank of Malawi, Selective Financial Services runs four regional offices in Lilongwe, Blantyre, Zomba and Mzuzu, supported by 31 satellites across the country.

The Malawi Stock Exchange (MSE) listed commercial bank, NBS Bank has renewed its technical assistance partnership with Netherlands based Rabobank, extending the collaboration until June 2026.

The agreement, signed recently during Rabo Partnership’s 35th Anniversary Conference in the Netherlands, marks a significant milestone in the long-standing relationship between the two institutions, which began informally in 2016 and was formalised in 2018.

Speaking during the signing event in the Netherlands, NBS Bank Chief Executive Officer, Temwani Simwaka, disclosed that the new phase of the partnership focuses on four strategic areas namely food and agriculture finance, energy transition, data management, and credit process optimisation.

Simwaka expressed that the event highlights how international collaboration is playing a crucial role in strengthening rural finance and financial inclusion in emerging markets.

“We are proud to continue this journey with Rabo Bank, their technical expertise and strategic support have played a vital role in NBS Bank’s transformation over the past few years—from revamping our IT infrastructure and Agency Banking to launching tailored Agri-financing and SME solutions.”

“The partnership has already delivered a notable impact in Malawi. Since its inception, NBS Bank has transitioned from near insolvency to becoming one of the country’s most profitable and innovative financial institutions,” said Simwaka.

She said some of the key achievements include the development of an Agribusiness Department, the rollout of Agency Banking to reach underserved rural areas, and the piloting of digital payment solutions for tea and macadamia estate farmers to replace risky cash transactions.

She further highlighted that with the renewed agreement, NBS Bank aims to accelerate digitisation, improve data governance, and empower its leadership through executive mentorship and knowledge-sharing programs.

Rabobank Partnerships CEO David Gerbrands also highlighted that the collaboration signals the Bank’s growing confidence and commitment to investing in world-class expertise to drive its growth agenda.

“Together, we are not just improving banking systems—we are building a more inclusive and resilient financial ecosystem in Malawi.”

“As Rabo Partnerships and NBS Bank plc enter this new chapter, they remain focused on their shared mission: to build a financially inclusive Malawi, where smallholder farmers, SMEs, and communities can thrive through access to tailored, innovative, and sustainable financial solutions,” said Gerbrands.

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