One of Malawi’s richest men, Thom Mpinganjira makes $32 million from FDH Bank

Feyisayo Ajayi -

Key Point

  • Thom Mpinganjira’s FDH Bank stake has surged by $32.41 million since July 1, boosting his wealth significantly.
  • FDH Bank’s market cap hit $420 million after a 23.54% stock surge on the Malawi Stock Exchange.
  • FDH Bank’s shares have delivered year-to-date gains of 50.09 percent in local currency terms, translating to 45.64 percent in USD terms.

Thom Mpinganjira, one of Malawi’s most successful and controversial businessmen, has added millions of dollars to his fortune in recent times, thanks to the recent increase in the market value of his stake in Blantyre-based lender, FDH Bank Plc.

According to data tracked by Billionaires.Africa, Mpinganjira’s stake in FDH Bank has increased by MWK56.23 billion ($32.41 million) since July 1, reinforcing his position as one of Malawi’s richest men. 

Earlier this year, from Jan. 1 to Feb. 5, Mpinganjira experienced a temporary setback when his stake in FDH Bank declined from $116.91 million) to $108.56 million. However, recent developments have more than compensated for this decline, marking a remarkable turnaround in his financial fortunes.

FDH Bank’s market cap tops $400 million after stock surge

FDH Bank, a key player in Malawi’s financial sector, operates under the umbrella of FDH Financial Holdings, which oversees banking operations, discount houses, investment management, and advisory services. Founded in April 2002 by Mpinganjira, the bank has grown to encompass 53 branches and 91 ATMs across all 27 districts of Malawi as of 2020.

Recent market movements have been particularly favorable for FDH Bank, with its shares on the Malawi Stock Exchange surging by 23.54 percent, from MWK85.04 ($0.049) to MWK105.06 ($0.061), elevating the company’s market capitalization to approximately $420 million. 

FDH Bank stake bolsters Thom Mpinganjira’s wealth

Thom Mpinganjira’s indirect stake in FDH Bank, amounting to 40.7 percent or 2,808,719,719 shares, solidifies his position not only as one of Malawi’s wealthiest individuals but also as a notable investor in the Southern African region.

The recent spike in FDH Bank’s share price has propelled the market value of his stake by MWK56.23 billion ($32.41 million), from MWK 238.85 billion ($137.68 million) on July 1 to MWK 295.08 billion ($170.09 million), highlighting his substantial financial growth in recent times.

Your Money and Your Life

FDH Bank’s shares are among the top performers on the Malawi Stock Exchange (MSE), delivering impressive year-to-date gains of 50.09 percent in local currency terms.

However, the Malawian Kwacha’s devaluation against the USD cuts these gains to 45.64 percent in foreign currency terms, impacting international investor returns. 

A $100,000 investment in FDH Bank since Jan. 1 would now be worth $145,639, representing a gain of $45,639.