Malawi phone service operators MTL, TNM in US$21 million debt

While phone consumers are still whining about poor services from the providers, they will have another shocker with revelations that two of the country’s phone service operators, Malawi Telecommunications Limited (MTL) and Telekom Networks  Malawi (TNM) are in huge foreign debt amounting to US$21 million (about K15.2 billion).

Talk on TNM and MTL
Talking  on TNM and MTL

Press Corporations Limited Financial Manager, Elizabeth Mafeni has disclosed that the two companies owe foreign firms the money incurred throughprocurement and technical infrastructure maintenance costs.

“In terms of exchange losses, which is a major impact on our performance, we are expecting a drop, because we have so far localized two to three of foreign loan in MTL, it’s now in Malawi Kwacha”, Mafeni  explained during a briefing of shareholders and investors.

Mafeni said converting the debt into local currency was difficult due to continued fluctuation of Kwacha against major foreign currencies.

PCL has confirmed in the group’s 2015 financial report that mobile phone carriers, MTL and TNM, face an uphill task to service the debt.

Meanwhile, Press Corporation has registered a 17 percent drop in its annual profit for the year ended 31st December 2015. The conglomerate registered pretax profit of K25.5 billion unlike in 2014 when it recorded K34.2 billion in profits.

Press Corporation Limited is a public company incorporated in Malawi, under the Companies Act 1984.

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5 years ago

Chikaonda made a lot of noise in 2005 when people were against privatizing MTL. With the usual arrogance, he said the company would perform. Where is it today? Govt should nationalize the company.

Che DC Namalamba
Che DC Namalamba
5 years ago

This is a ploy to run away from paying corporate Tax

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