Press Corporation (PCL) plc has announced plans to establish an export trading and distribution firm to diversify its foreign currency income streams.
The move comes at a time market analysts have been tipping PCL to diversify into high-value sectors using its financial capacity and cement its status as the country’s biggest group with interest in most critical industries, including financial services and telecommunications.
In published terms of reference for the set-up of an export trading and distribution venture, the Malawi Stock Exchange (MSE)-listed firm said the planned venture is in line with its strategic plan to expand and diversify further its portfolio.
Reads part of the terms of reference: “PCL is looking to expand further its portfolio and is currently exploring strategic investment opportunities in Malawi aimed at generating consistent and scalable foreign currency income streams through high value exports.”
PCL wants to engage consultants to support in designing and implementation of a commercially viable export trading and distribution platform in Malawi.
In an interview yesterday, PCL group CEO Ronald Mangani said they are seriously looking at setting up an investment venture in the export trade.
“However, it is still early days in our planning; hence, the request for proposals. We will be able to comment further once progress is made,” he said.
National Working Group on Trade Policy chairperson Fredrick Changaya described the proposed venture as critical to both PCL and the economy because it will help to diversify the country’s export base and increase the value of exports.
He said: “The venture will drive the much needed diversification away from traditional crops, including maize and tobacco.
“Malawi needed to reach a level where much of our land is dedicated to high-value” high margin cash export crops.
Changaya, who is also National Planning Commission director general, said there is a need to diversify away from basic poverty inculcating agriculture.
In a separate interview, stock market investor Benedict Nkhoma said the PCL strategy seeks to diversify its income streams, but urged the group to prioritise value-addition to ensure its exports attract better revenues.
He said: “A well-established player in the market with capital capacity like Press Corporation will ensure transparency and accountability in the export proceeds and give more opportunities for small businesses to get better prices.”
Meanwhile, stock market analyst and PCL minority shareholder Purity Chitaro while commending the move for its diversification aspect, urged proper due diligence to ensure potential risks are minimised.
