By Dean Chisambo
The Minister of Finance and Economic Planning has called for increased progress, hard work, and improved performance among State-Owned Enterprises (SOEs) to generate revenue and pay dividends and remittances to the government.
Chithyola made these remarks during the 2025/26 signing ceremony of the Shareholders’ Letters of Expectations in Lilongwe.
He noted that since the initiative began last year, some SOEs have made significant progress, with some even able to pay dividends and remittances to the government.
However, he acknowledged that others are still struggling due to various challenges.
Chithyola emphasized that the event should serve as a wake-up call for SOEs to continue working diligently.
He also urged better-performing SOEs to share their strategies with others that are struggling, highlighting the importance of learning from one another’s successes.
He disclosed that his ministry will soon begin assessments through a monitoring framework aimed at evaluating the challenges and environment of some SOEs.
“There have been several functional reviews which have introduced numerous turnaround strategies to ensure that these SOEs are working in accordance with their plans,” Chithyola said.
He also pointed out that one of the challenges observed is that some SOEs are too ambitious and operate outside their approved budgets.
He stressed that compliance with the approved budget and the Key Performance Indicators (KPIs) developed for assessment will be crucial in evaluating their performance.
Chithyola added that some SOEs have developed a tendency to over-rely on government subventions, which has led to a situation where these organizations become burdensome to the implementation of the national budget.
In his remarks, the Controller of Statutory Corporations, Peter Simbani, stated that the signing of the Letters of Expectations would outline what the government expects from each state corporation, particularly in terms of revenue targets, expenditures, and dividends to be paid to the government.
Simbani revealed that his office will monitor the implementation of the KPIs that will be developed.
On his part, the Chief Executive Officer of the National Economic Empowerment Fund (NEEF), Humphrey Mdyetseni, emphasized that the KPIs are intended to measure the deliverables expected from state-owned enterprises.
These deliverables aim to improve service delivery and have a positive impact on the lives of Malawians.
Mdyetseni highlighted that the resources received from the government are meant to be spent with the goal of transforming the lives of Malawians.
He added that the significance of the event is to remind SOEs of their duty and obligation to use state resources efficiently and effectively for the betterment of the country, especially for the majority of poor Malawians.
The event brought together several high-ranking officials from various state-owned enterprises, all of whom are monitored by the Ministry of Finance and Economic Affairs for their work, actions, and performance.
