TNM Contribution to Malawi GDP soar to K40.2bn

Lilongwe, Mobile network and ICT service provider, Telecom Networks Malawi (TNM), has announced a direct total contribution of K40.2 billion into the country’s economy, up from K30 billion in 2015.

This represents 34 percent increase in the company’s contribution to the country’s GDP as compared to 2015 and TNM attributes it to its improved performance in the 2016 financial year.

TNM press release dated June 15, 2017 says the K40.2 billion contribution comprises taxes and fees to government and Malawi Communications Regulatory Authority (MACRA), dividends to shareholders, benefits and emoluments to employees, retained earnings for infrastructure investment, payments to distribution partners, and interest to lenders of capital.

The 2016 TNM Annual Report indicates that investment in infrastructure accounted for K11.8 billion, the lion share of the wealth created, and it included capital expenditure in launching a 4G/LTE network platform, the first mobile carrier of its kind in Malawi, explains the release.

It discloses that government received K7 billion in form of taxes fees and levies, and that employees received K8 billion in salaries and benefits, while K3.4 billion was for payment of interest as shareholders received more than K3 billion in dividends.

TNM’s Chairman, Matthews Chikaonda, is quoted to have said in the company’s Annual Report that TNMs sustainable business is built on profits, good governance, and innovation business model and as such it created wealth of more than K40 billion, 71 percent of which was shared back with the economy.

The company’s Chief Executive Officer, Douglas Stevensons is also quoted to have said in the Annual Report that TNM’s overall revenues increased by 31 percent in 2016, which he attributed to growth in subscriber base, increases in prepaid airtime revenues and improvements as well as expansion in network.

Good performance in prepaid airtime revenues, accounting for 54 percent of our revenues, which grew by 21 percent to MK34.9 billion, was recorded, as customers enjoyed a better-quality network and wider network availability, Stevenson is quoted.

He continues; A marked increase in gross connections and general customer usage, especially in the northern and central regions, was recorded and complemented by improvements in distribution and customer services.

According to the release, the CEO said between 2015 and 2016, TNM invested a total of K21.2 billion to roll out the 4G/LTE network platform which enables TNM to be the first provider of the fastest internet and data service on the backbone of a mobile network.

Other areas of investment using that approach included Lilongwe and Blantyre coverage expansion, improvements in fixed broadband and mobile broadband technology and various other upgrades, according to the release.

Stevenson further says in the Report during the financial year under review, TNM achieved the status of an integrated mobile network and ICT service provider capable of offering network convergence in terms of GSM, telephone, video and data communication services within a single network platform.

Together, the TNM 4G LTE upgrade created a super-fast, easy to use, network for subscribers to enjoy media streaming, messaging services, downloads, and more. Its from these capabilities, that TNMs new product and service offerings were rolled out, he says.

On going forward Stevenson says TNM is implementing a plan that guarantees universal access to data and broadband, and the use of appropriate end-user devices, including smart phones that provide optimal use and compatibility with growth in TNMs mobile innovations.

The CEO promises the fastest internet and data services and the most reliable uptime, along with the greatest accessibility and that TNM customer service will be second to none.

Much of what is required has been in progress over the past two to three years, but our 4G LTE network is a game changer, he says.

Source: Malawi News Agency � MANA