Airtel Malawi has been forced to pay K820 million fine for failing to sell 20 percent of the company’s shares to Malawian investors.
Malawi Communications Regulatory Authority (MACRA) Director General Godfrey Itaye announced the fine at a press briefing in Blantyre today.
Under the Communications Act 2016 and the telecommunications and broaBcasting Licensing Regulations which came into effect in 2016, it is a requirement for providers of electronic communication services to have a minimum of 20 percent local shareholding.
According to Itaye, in 2014, upon the renewal of its telecommunications license, Airtel committed itself to have a minimum of 20 percent local shareholding.
The mobile network operator had up to the 25th of November 2018 to comply with this requirement but failed. MACRA then imposed a 500 million Kwacha fine on Airtel.
The regulatory body further imposed a fine of 20 million Kwacha for every 14 days from November 208 to July 2019.
Airtel Malawi has since paid a total of MK820 million in fines. If the company remains in breach of the conditions of its license, it will continue to pay more money.