Listed integrated ICT and telecommunications service provider, TNM plc, has adjusted upwards prices for its products and services by 20 percent, effective Tuesday.
A statement from the public listed company issued on Saturday says the adjustment has been necessitated by the rising cost of doing business as a result of a 25 percent devaluation of the local currency, the Kwacha in May, coupled with persistent inflationary pressures.
“With the recent changes in business environment, a corresponding adjustment of our tariffs is necessary to protect shareholder value and capital exposure of the business while maintaining TNM’s goal of offering high quality and affordable telecommunication products and services,” reads the statement.
The statement further indicates that details of the new pricing will be published in the media as it is required by the license.
Speaking in an interview during the TNM Annual General Meeting in Blantyre last month, TNM Board Chairperson Ted Phiri said the devaluation has increased the company’s operating costs by approximately by K4 billion.
He, however, assured that the company will make sure that they bring business strategies that will spur revenue growth.
“It is our inspiration to make a good return for the shareholders and we are working hard to mitigate the risks that we experienced and realize better revenue and profit for the company,” he said.
The raise of prices by TNM comes barely a week after Airtel Malawi ended their trial for MoFaya bundles reducing the volume by almost half at the same prices.
In May this year, the Reserve Bank of Malawi (RBM) announced a 25 percent devaluation of the Malawi Kwacha which saw the local currency losing value trading at K1050 to a dollar from around K850 to a dollar.
RBM Governor Wilson Banda said the move aimed at giving the local currency its true value and aligning it with the then trends.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
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