Standard Bank plc says its balance sheet remains strong to withstand the current macroeconomic shifts after the September 16 General Election. The bank’s chief executive Phillip Madinga said in an interview on Friday in the context of the bank’s share price movement on the Malawi Stock Exchange that they expect long-term profitability to be anchored by investments in the real sector where it already has a strong footing. In the year ended December 2024, Standard Bank plc recorded a 64 percent increase in profit-after-tax to K86.4 billion while in the half-year ended June 30 2025, the bank’s profit increased to K48.4 billion, a 14 percent increase compared to the same period last year.
Madinga said as investors gradually move from sovereign markets following the new government’s tone on austerity, the bank’s risk will be mitigated by its strong operating strategy in alternative sectors such as agriculture, mining, infrastructure and energy. He said: “Standard Bank welcomes the new government’s commitment to bring economic recovery by supporting investments in the productive sectors. “Our track record in financing infrastructure, mining and agriculture is undeniably strong.
We have also been instrumental in the Malawi energy sector as it continues to undergo reform.” With several mining development agreements (MDAs) gradually falling in place for uranium, rare earth, rutile and graphite, among others, Madinga assured that Standard Bank is well positioned to support them as it enjoys leverage from the expertise of its South African parent company, the Standard Bank Group. The group, Africa’s largest bank by assets and connected to Industrial and Commercial Bank of China, is a key financier of the mining sector in one of the continent’s largest mining economies and in other countries outside South Africa. Malawi’s mining sector has the potential to generate about $3 billion annually, but pilferage through unregulated exports is also high at around $600 million, according to data shared during a Standard Bank Growth Conversations Round Table in July this year.
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Madinga said as the country’s mining sector gradually opens up, mining investors stand to benefit from Standard Bank’s multi-disciplinary teams that offer insights into risk mitigation, structured financing and how to navigate the pitfalls in this dynamic and complex sector. Geologist Ignatius Kamwanje said mining industry regulation needs to be strengthened to seal loopholes. He said: “Mining is the new game-changer for the economy as it has potential to help address the country’s fiscal challenges by boosting foreign exchange inflows. “We need to act with speed to conclude mining development agreements and move into the extraction and exporting stage.” Kamwanje said finalisation of the MDAs will increase equity participation by investors on MSE as some of the mining companies have been obliged to list on the local bourse.
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