Government-owned Umodzi Holdings Limited has declared an interim dividend of K200 million to its sole shareholder, the government, from profits registered in the 2024-25 financial year.
Speaking at the official handover ceremony in Lilongwe on Tuesday, Umodzi Holdings Chief Executive Officer Steve Lwanda announced that the company, which only started making profits in 2021, is projecting a profit-before-tax of K3.9 billion for the 2024- 25 financial year.
“This is the second time we are paying a dividend to the government since the company’s inception. The first pay out of K300 million was made in September 2024,” Lwanda said.
Established in 2012 and fully operational since 2015, Umodzi Holdings manages the five-star President Hotel, the Bingu International Conference Centre and the Presidential Villas under the Umodzi Park Resort brand.
Lwanda said for years, the company faced financial struggles but a major turnaround began with its performance in the 2021-22 financial year, when it posted a profit of K413 million followed by a K1.3 billion profit registered in the 2022-23 financial year.
Umodzi’s profits surged to K1.8 for the 2023-24 financial year, which ended in March 2024 and the company anticipates a profit before tax of K3.9 billion in the 2024-25 financial year, ending March 2025.
In addition to the operational improvements, Lwanda disclosed that it successfully paid off all outstanding loans, as it initially got a $5.8 million working capital loan originally from Aflexim Bank in 2012.
Meanwhile, the company has announced expansion plans including the expansion of exclusive Presidential Villas currently 14 in total, and construction of two new hotels along the lakeshore areas, a project that has already been approved by the company’s board.
Ministry of Finance and Economic Affairs Deputy Director of Public Finance Management Systems Edwin Visabwe said monetary contributions in form of dividends by state owned enterprises (SOEs) go a long way in making sure that the government is also performing its duties.
Visabwe added that in the 2025- 26 financial year, the government anticipates collecting over K26 billion dividends from SOEs.
“The government needs resources and when institutions are performing well, it means the government is able to generate revenue. If you borrow to invest, we should be able to produce and make our own resources for operations to pay out dividends and even service the loans. We should not borrow for consumption,” he added.
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