Nitl reaps from high interests, dividends

Fueling Malawi’s Economic Growth: High Yields from Strategic Investments

Post was last updated: September 28, 2025

Key Business Points

  • High interest rates have contributed to a significant surge in National Investment Trust plc’s (Nitl) share value, profit, and gross return, making it an attractive opportunity for Malawi’s business community.
  • The company’s market capitalisation has increased by 678% between January to June 2025, from K59 billion to K459 billion, driven by a 672% jump in share price from K440 to K3 400.
  • Diversification of portfolio is recommended to further enhance Nitl’s performance, considering investments in high-yielding instruments such as corporate bonds under private placements, which are usually fully collateralised, a strategy that can be referred to as "kugawa kwa upande" (diversification) in Chichewa.

The recent financial results of National Investment Trust plc (Nitl), a Malawi Stock Exchange (MSE)-listed collective investment scheme, have shown a remarkable surge in share value, profit, and gross return. The company’s share price has jumped 672% from K440 to K3 400, while profit and gross return have surged by 1,800% and 1,040%, respectively. This significant increase can be attributed to the high interest rates environment, which has positively impacted the company’s market capitalisation, increasing it by 678% between January to June 2025 from K59 billion to K459 billion.

According to capital markets analyst Benedict Nkhoma, the performance is a result of the rise in share prices of the investments held in different listed counters, such as NBS Bank plc, FMB Capital Holdings plc, Standard Bank (Malawi) plc, Nico Holdings plc, and National Bank of Malawi plc. This growth is a testament to the company’s strategic investment decisions, which have yielded significant returns. Financial expert and stock market investor Brian Kampanje attributed the company’s impressive performance to its investment in high-yielding instruments, suggesting that diversifying the portfolio further by considering subscription to debt instruments in corporate bonds under private placements could be beneficial.

Nitl board chairperson Esther Gondwe announced that the firm’s annual profit in 2024 jumped to K29.76 billion from K21.50 billion in 2023, demonstrating the company’s strong financial position. As the company continues to grow, it is essential for local entrepreneurs and investors to take note of the opportunities and challenges in the market. By understanding the current market trends and making informed investment decisions, businesses can capitalize on the growth and "kwa nthaka" (benefit) from the positive developments in the economy. With the right strategy and investment approach, companies like Nitl can continue to thrive, contributing to Malawi’s economic growth and development.

Source Link

What are your thoughts on this business development? Share your insights and remember to follow us on Facebook and Twitter for the latest Malawi business news and opportunities. Visit us daily for comprehensive coverage of Malawi’s business landscape.

Vanessa Banda
Latest posts by Vanessa Banda (see all)
Post Views: 132