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NBM Revolutionizes Operations with New Holding Company Structure to Fuel Business Growth in Malawi

Post was last updated: September 10, 2025

Key Business Points

  • National Bank of Malawi (NBM) plans to create a holding company, NBM Holdings, to oversee its diversified portfolio of subsidiaries, aiming to enhance governance, regulatory compliance, and strategic direction.
  • The holding company model is expected to streamline operations, improve focus, and increase efficiency among NBM’s subsidiaries, including NBM Development Bank, NBM Capital Limited, and Stockbrokers Malawi Limited.
  • The move is seen as a positive sign for growth and investment opportunities in Malawi’s financial sector, with NBM Holdings set to join other major holding firms, such as Nico Holdings plc and FDH Financial Holdings Limited.

The National Bank of Malawi’s (NBM) plan to create a holding company, NBM Holdings, is a strategic move aimed at enhancing governance, regulatory compliance, and strategic direction within its diversified portfolio of subsidiaries. According to financial market experts, this model is the best from a regulatory and governance perspective, as it allows for more effective oversight and management of the various entities under the holding company. NBM is seeking consultancy services to develop the operating model of the new entity, which will assess the effectiveness of the current operating model, identify gaps and areas for improvement, and benchmark operating models from regional and international holding companies.

The proposed holding company, NBM Holdings, envisions establishing itself as a strong investment vehicle and strategic oversight body, delivering long-term shareholder value and supporting national development. This move is expected to increase the productivity of NBM’s subsidiaries, which include NBM Development Bank, NBM Capital Limited, and Stockbrokers Malawi Limited, among others. As Benedicto Nkhoma, a stock market investor, noted, "Given the growth of the bank, it is important that they set up a holding company to ensure that there is focus in the running of the entities under it."

Brian Kampanje, a financial market expert, observed that the proposed structure will enhance supervision of the subsidiaries and provide strategic direction to the executives, leading to increased efficiency and productivity. This development is also seen as a positive sign for growth and investment opportunities in Malawi’s financial sector, with NBM Holdings set to join other major holding firms, such as Nico Holdings plc and FDH Financial Holdings Limited. As NBM’s chief executive officer, Harold Jiya, stated, "We will explore all options to ensure we will take care of all investors and stakeholders," highlighting the bank’s commitment to its shareholders and stakeholders.

In Chichewa, this development can be described as "kugawa kwa tsogolo", or planning for the future, as NBM seeks to position itself for long-term growth and success. With its diversified portfolio of subsidiaries and strong shareholder base, including Press Corporation plc, Old Mutual Group, and the public, NBM is well-placed to capitalize on emerging opportunities in Malawi’s financial sector. As the bank navigates this significant development, it will be important for stakeholders to keep a close eye on "mfundo wa tsamba", or the foundation of the business, to ensure that the holding company is established on a strong and stable footing.

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Vanessa Banda
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