Dr Thomson Mpinganjira Claims MBC Award

In December 2015, FDH Financial Holdings founder Dr Thomson Mpinganjira was awarded the Large Scale Enterprise of the Year individual award at the Malawi Broadcasting Corporation (MBC) Innovation Awards.

As the only Malawian business leader with majority shareholdings in two commercial banks, namely Malawi Savings Bank and FDH Bank, Dr Thomson Mpinganjira beat esteemed businessman Jimmy Korea Mpatsa to claim the award, as well as a cash prize of MK500,000 and a one month vacation to China and Egypt.

Dr Thomson Mpinganjira told the audience that he was overwhelmed and humbled. He thanked those who nominated him, as well as MBC, not only for their generous prize, but for coming up with the idea. Dr Mpinganjira explained that such awards were extremely important in Malawi, providing recognition and inspiring citizens to work hard.

Davis Kansenza claimed the Small-Scale Enterprise of the Year award, also receiving a cash prize and international trips. Rachel Sibande was runner up.

President Peter Mutharika presided over the awards ceremony. In his address, he underlined the importance of innovation in helping Malawians address challenges faced by the country.

About the Malawi Broadcasting Corporation

MBC is Malawi’s sole public broadcaster, deriving its mandate from the Communications Act 1998, an Act of Parliament 1964, and license conditions stipulated by the Malawi Communications Regulatory Authority. It is through these powers that MBC occupies a pivotal role in broadcasting throughout the country, encouraging the sharing of information throughout Malawian society, providing a wealth of programming in local and official languages to meet public interests and needs.

A Professional Profile of Dr Thomson Mpinganjira

Dr Mpinganjira is the first – and so far, only – private individual to own a bank in Malawi. Today his bank ranks amongst the country’s top 12 financial institutions.

From a small discount house, Dr Mpinganjira amassed a substantial banking empire, culminating in the creation of FDH Financial Holdings.

FDH Financial Holdings incorporates four subsidiary companies, also established by Dr Mpinganjira, namely:

·         FDH Money Bureau

·         FDH Bank

·         First Discount House

·         FDH Stockbrokers

Find out more about FDH Stockbrokers by viewing the attached video.

In 2014, Dr Thomson Mpinganjira was appointed Malawian Public Service Reform Commissioner. This important government body was presided over by State Vice President Saulos Chilima. Other prominent Malawian business figures appointed to the Commission include Bright Mangulama, the former Director of Public Procurement, and women’s rights activist and social development lawyer Seodi White. Find out more about Malawi’s Public Service Reform Commission by viewing the attached PDF.

Dr Mpinganjira has extensive experience of business leadership, building a strong reputation as a pioneer of the Malawian finance industry, where he is renowned for his innovative, results-orientated approach. As an advocate of ethical business practices, he serves on various boards and committees, including the Ethical & Investigations Committee for the Institute of Chartered Accountants, and the Small and Medium Enterprises Association.

As a keen philanthropist, Dr Thomson Mpinganjira supports a variety of charitable causes throughout Malawi, both personally and through the corporate social responsibility programmes of his various business entities. A proponent of ethical leadership, he appreciates the value of giving back to local communities. As founder of FDH Bank, Dr Mpinganjira recently sponsored a conference for female entrepreneurs where he gave a presentation sharing business tips and skills. Dr Mpinganjira supports numerous charitable organisations, including the Malamulo Adventist Hospital, where he recently financed construction of a new paediatric unit.

Dr Mpinganjira is a trustee of both the Diabetes Association of Malawi and the Cancer Association of Malawi. He also serves on several educational boards, including the University of Malawi Alumni Association and the Zomba Catholic Secondary School Board of Trustees.

You can find out more about the FDH Bank founder’s philanthropic work by viewing the attached infographic.

FDH Financial Holdings: Profits for 2019-2020

Malawian financial services provider FDH Financial Holdings posted after-tax profits of MK4.96 billion for the first half of the year ended 30^th June 2019. This marked a significant increase on the MK1.38 billion in profits reported the previous year (June 2018).

The company attributes its sustained profitability to increased revenue generated by subsidiary company FDH Bank, which posted after-tax profits of MK3.35 billion, rising from MK1.34 billion in the corresponding period the year before.

Another subsidiary company of FDH Financial Holdings, First Discount House, reported after-tax profits of MK1.19 billion for the first half of 2019. Compared with MK156.8 million posted for the corresponding period in 2018, again this represented a significant increase in profits.

FDH Financial Holdings issued a statement covering the first half of 2019. In it, the company revealed 56% growth, to MK18.3 billion. Conversely, net interest remained flat in comparison with June 2018, despite growth in assets by both First Discount House and FDH Bank. This was attributed to a drop in monetary policy triggering a decline in all-type Treasury Bill rates combined with decreased lending rates.

FDH Financial Holdings’ biannual statement was signed by Board Chair Noel Nkulichi, Founder Dr Thomson Mpinganjira, CFO George Chiltera, and Audit & Finance Chairman Ulemu Katunga. It outlined the organisation’s continued commitment to digital development and improving customer experience through the implementation of innovative products and digital platforms across Malawi, including mobile banking platforms.

FDH Financial Holdings’ statement revealed that total assets grew by 37% from June 2018, an increase the company attributed to its drive to increase its assets book, while at the same time diversifying its investment portfolio.

Going forward, FDH Financial Holdings anticipated a stable economic environment notwithstanding upcoming elections, with inflation averaging around 9%, and the kwacha/USD exchange rate remaining stable for the rest of the year. The statement also predicted that lending rates would fall, spurring credit growth and resultant growth in the economy.

In February 2020, the company’s optimistic prediction proved well-founded, when FDH Financial Holdings reported after-tax profits of MK11.3 billion for the year ending 31^st December 2019, marking a 44% increase on the MK7.8 billion posted the previous year.

FDH Financial Holdings’ statement for the year ended December 2019 revealed a further 38% income growth, to MK44.6 billion, again bolstered by the good performance of its subsidiary company FDH Bank.

You can learn more about FDH Financial Holdings’ impressive gains throughout 2019 by viewing the attached infographic.

About FDH Financial Holdings

FDH Financial Holdings comprises four subsidiary companies, namely: First Discount House, FDH Money Bureau, FDH Bank, and FDH Stockbrokers Limited.

Founded by Dr Thomson Mpinganjira, FDH Financial Holdings is the first Malawian financial institution to be established and owned by an individual citizen. Based in Blantyre, Malawi, FDH Financial Holdings remains a privately held organisation, specialising in banking, stockbroking, bureau de change, discount house, and providing corporate and personal financial products and services.

Renowned throughout the region as one of the most important Malawian businessmen of his generation, Thomson Mpinganjira created FDH Financial Holdings, a homegrown Malawian organisation that is today a major financial services provider. With further expansion plans in the works, it is anticipated that this leading company will grow further still, playing an instrumental role in the digitisation of banking systems throughout Malawi and increasing access to innovative banking solutions for citizens all over the country.

Outside of his companies, Dr Mpinganjira is committed to supporting development and economic growth throughout Malawi, chairing a number of boards including the Malawi Investment Promotion Agency and the Public Sector Reform Commission. You can learn more about Thomson Mpinganjira by watching the attached short video.

FDH Bank Provides KM150 Million in Scholarships

FDH Bank, the financial institution founded by Malawian entrepreneur and investor, Dr Thomson Mpinganjira, set aside MK150 million to fund scholarships in tertiary institutions to support Malawi’s education sector.

Dr Mpinganjira explained that FDH Bank had entered into agreements with various educational institutions with the aim of motivating growth. Dr Thomson Mpinganjira asserted that such institutions are an integral component in shaping the future of Malawi, adding that FDH Bank is proud of its rewarding working relationship with such highly regarded institutions.

Dubbed the ‘FDH Cares Corporate Social Responsibility Education Scholarships’, the program will enable 16 students to study four-year courses at the Polytechnic and Chancellor College, as well as financing scholarships for 12 students to study five-year courses at the Malawi University of Science and Technology (MUST). Learn more about this leading Malawian learning institution by viewing the attached PDF.

Mary Wasiri, Registrar for Chancellor College, thanked FDH Bank for its generous support. Address Malata, MUST’s Vice Chancellor Professor, remarked that it had been sad to see needy students failing through lack of money to buy food and meet other basic necessities. She explained that although the Malawi Government offers student loan facilities, not all students qualify for the scheme. Ms Malata pointed out that by providing the funding, FDH Bank is supporting Sustainable Development Goals, facilitating education and empowerment of female pupils.

Precious Chigamba, who benefited under the scholarship scheme, said that as a medical student specialising in microbiology, her ambition to work in vaccine development – particularly for waterborne diseases and HIV – had all been made possible thanks to FDH Bank’s generous sponsorship scheme.

FDH Bank’s Deputy Managing Director, William Mpinganjira, explained that the fund will support the students throughout their college and university studies. He pointed out that that as well as providing scholarship funding, FDH Bank had also presented internship opportunities to 10 university students, explaining that this demonstrated the bank’s commitment to supporting the Government of Malawi in driving the country’s education sector forward.

William Mpinganjira urged all scholarship beneficiaries to make the most of their opportunities, explaining that one key aspect that the bank looks at very closely is academic performance. He pledged his confidence in the beneficiaries, commenting that he expected the group to reconvene in a few years to celebrate their graduations.

FDH Bank: Corporate Social Responsibility

FDH Bank operates a strident Corporate Social Responsibility (CSR) strategy, honed to support socio-economic growth throughout Malawi, concentrating on education and healthcare in particular. As well as supporting students studying at MUST and UNIMA, FDH Bank is currently involved in a variety of healthcare causes. Learn more by viewing the attached infographic.

FDH Bank has been the proud sponsor of a variety of sporting causes over the years; inspiring, motivating, and encouraging sportsmen and women across Malawi to apply themselves and follow their dreams. This leading Malawian bank sponsors a variety of sporting events across the country today, including financing the Zomba, Lilongwe, Blantyre, and Mzuzu Mayors’ Trophies. FDH Bank also entered into a contract with the Football Association of Malawi, agreeing to a five-year sponsorship deal worth approximately MK450 million.

As a proponent of Corporate Social Responsibility and philanthropy, Dr Thomson Mpinganjira became personally involved in the struggles of a Dowa domestic abuse victim who lost her hands in an attack by her estranged husband. Despite widespread media coverage at the time, Thomson Mpinganjira discovered that, some 10 years after the attack, little had been done to help Marieta Samuel. Through FDH Bank’s CSR program, he provided her with a new home and a means by which to earn a steady income. Find out more by watching the attached video.

Ethical Corporate Governance

Corporate governance facilitates effective management of a company to ensure its long-term success. This article explores the importance of implementing ethical corporate governance, protecting the interests of customers, stakeholders, employees, and the public at large.

What Is Corporate Governance?

Corporate governance is an operational system by which companies are controlled and directed.

A company is governed by its board of directors. Shareholders appoint directors and auditors to establish the appropriate governance structure. The board’s responsibilities include setting strategic aims and providing the necessary leadership to put them into effect. Directors are responsible for managing the business and reporting to company shareholders.

Corporate governance is distinct from routine operational management. It directs the activities of the company board and sets the value of the company.

In many countries, legal regulations dictate corporate governance code, establishing accounting rules and standards for listed companies. Nevertheless, good corporate governance is about more than simply meeting legal requirements. Over the last few years, the term “corporate governance” has increasingly been used to describe issues relating to accountability and governance issues reaching beyond the corporate sector.

Corporate governance is about improving accountability and transparency within existing systems. Numerous academic studies have revealed that companies that embrace effective corporate governance strategies outperform their rivals in commercial terms. To learn how companies benefit from effective corporate governance, view the attached infographic.

Why Is Ethical Corporate Governance So Important?

Ethical corporate governance has become something of a buzz phrase these days, with virtually every company seeking to achieve it. But what exactly is ethical corporate governance, and how can we really be sure that a company practices what it preaches?

All companies exist primarily to create a product or fulfil a service which can be used to generate profit. For corporate governance to be ethical, this intention must be balanced with controls ensuring that business operations do not transgress into behaviour that could be construed as unethical or immoral.

FDH Financial Holdings founder Dr Thomson Mpinganjira will be well aware of the benefits of implementing ethical corporate governance throughout his companies. FDH Bank implements rigorous corporate social responsibility strategies, giving back to communities throughout Malawi. Find out more about charitable causes supported by Dr Thomson Mpinganjira’s companies by viewing the attached PDF.

Corporations represent some of society’s most important institutions and dominant organisations. Some corporations exert economic power and societal influence to rival that of an entire nation. Multinationals like Apple and Google wield phenomenal power, overseeing massive global supply chains and distributing products and services all over the world. Therefore, it is vital that these organisations operate ethically, implementing corporate governance that is principled, honest, and fair.

In the past, companies have looked to leverage their market position in order to inhibit competition, in some cases even threatening local populations. Ethical corporate governance effectively stops this from happening.

Ethical corporate governance is a multifaceted issue with many complex layers, but the crux of the issue is accountability, i.e. transparency, fiduciary duty, and mechanisms of control and auditing.

In recent years, the business world has seen a marked shift in approach to corporate governance. Whereas traditionally companies may have been ‘out for themselves’, extracting maximum profit for minimum outlay irrespective of third-party consequences, the advent of the internet age has had significant ramifications in terms of corporate identity.

In a world of social media and viral posts, where the public always gets the last say, multinational organisations are forced to take their environmental and social responsibilities more seriously, weaving them into their business agenda and operating in a more ethical way.

Find out more about the benefits of ethical business practices by viewing the attached video.