State Holds Tight on Sunbird Stake: What This Means for Malawi’s Business Landscape
Key Business Points
- The government has rejected calls to reduce its 71% shareholding in Sunbird Hotels Limited, despite pressure from minority shareholders seeking greater public participation.
- Sunbird Hotels expects profits of between K13 billion and K15.1 billion in 2025, representing a 43% jump from the previous year, making it an attractive investment opportunity for Malawians.
- The Malawi Stock Exchange has only 16 listed counters, and the government’s reluctance to divest stakes in profitable entities, such as Sunbird and Umodzi Holdings Limited, undermines capital market growth and financial inclusion (kukwetera kwa njira za ndalama).
The Malawian government has taken a firm stance on its shareholding in Sunbird Hotels Limited, refusing to reduce its 71% stake in the company. This decision comes despite pressure from minority shareholders, who are seeking greater public participation in the profitable hotel chain. Press Corporation Limited holds 15% of the company, while the remaining 14% is publicly traded. According to Finance Minister Joseph Mwanamvekha, the government’s position is non-negotiable, and they will not sell a profitable business like Sunbird.
The hotel chain has rebounded strongly from pandemic-related losses, with expected profits of between K13 billion and K15.1 billion in 2025. This represents a 43% jump from the K10.6 billion recorded the previous year. Misalico, the Minority Shareholders Association of Listed Companies, has argued that the government’s stance contradicts the original purpose of establishing the Malawi Stock Exchange, which was to enable citizens to own shares in state enterprises and create a capital market that generates investment resources.
Misalico General Secretary Frank Harawa emphasized that the government’s reluctance to divest stakes in profitable entities undermines capital market growth. He noted that the exchange currently lists only 16 counters, and that state-owned companies could benefit from listing on the local bourse through recapitalization and improved financial inclusion. MSE Chief Executive Officer John Kamanga recently stated that discussions were underway with some state-owned enterprises about potential listings, but poor financial records were a major barrier.
Besides Sunbird, the government also owns Umodzi Holdings Limited, which operates the Bingu International Convention Centre, President Hotel, and Presidential Villas. The company has turned around its fortunes since taking over the businesses from Peermont, posting a K7 billion half-year profit by October. Both Sunbird and Umodzi are planning expansion investments and exploring financing options, with Misalico and MSE arguing that the stock market has sufficient resources to fund the multimillion-dollar ventures. As Malawian entrepreneurs (wafipa wa Malawi) and business owners consider investment opportunities, they may want to explore the potential of Sunbird and Umodzi, as well as the broader implications of the government’s stance on shareholding and capital market growth. Kodi ndi nkhani ya mphamvu (money is a powerful thing), and the government’s decisions will likely have a significant impact on the Malawian economy (uchumi wa Malawi) and business sector (nzika ya biashara).
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