Standard Bank injects over K320 billion into economy

By Wezi Nyirongo

Standard Bank Plc has injected over K320 billion directly into the Malawi economy with taxes to government, agriculture, and infrastructure projects competing for the lion’s share of the funding, Chief Executive Phillip Madinga said on Wednesday.

The bank will also invest about $100 million into the tobacco sector this year to promote export-oriented manufacturing geared towards forex generation, he said.

Addressing the bank’s investors on performance for the financial year ended December 31, 2024, Madinga said Standard Bank’s contributions underscore its core purpose of driving national growth.

“At Standard Bank, we aim to be “more than a bank. Hence, our unwavering support and commitment to drive Malawi’s growth. We do so by making a positive impact on societies in which we operate, the economy, and the environment,” he said.

From the over K320 billion, the lion’s financing share was claimed by investment facilities in agriculture at K96 billion, taxes to government at K78 billion, and infrastructure development facilities totaling K47 billion followed by the manufacturing sector at K46 billion.

“Standard Bank continues to take the lead in the market in providing sustainable financing facilities and partnering with clients to create shared value. We are proactively managing environmental, social, and governance (ESG) risks associated with our operations and those of our clients,” he added.

Some of the investment went to climate change-geared financing for agriculture, sustainable energy financing for gas, renewable irrigation, employee development, SME development through Phuka, and deliberate financial inclusion programs.

Madinga said during the FY24, Standard Bank Plc withstood economic turbulence to record a net profit of K86.4 billion in 2024 up from K52.5 billion, an increase of 64 percent.

“The group demonstrated remarkable resilience and experienced growth despite the challenging economic environment characterized by high inflation and disparities in the supply and demand for foreign currency,” he said.