In their effort to strengthen digital connectivity, Telekom Networks Malawi (TNM) invested MK31.5-billion (about US$39-million) last year in telecommunications infrastructure development.
The board chairman of TNM, George Partridge stated that the penetration of telecommunications services in the country is comparatively lower in comparison to other markets as it stands at a mere 48%.
“The smartphone penetration in the country is very low but growing at a faster rate of more than 240% since 2018 and we still have 55% of Malawi’s adult population which does not have access to financial services of any kind. This means that the potential of growth of our business is still enormous. The company predicts that the macro-economic environment will remain challenging in 2021 and put more pressure on the business and revenue due to the volatile exchange rate and the ongoing impact of COVID-19.”
George Partridge, Board Chairman, TNM
While the company’s net profit has been in decline since 2019 which has affected the dividend payment to shareholders. The company anticipates that a surplus in the maize harvest should result in food security which might empower the rural subscribers with disposable income that might be spent on telecommunications services.
