Mobile network operator TNM has announced that it will hike prices of its products and services by 20 percent due to the 25 percent devaluation of the Malawi Kwacha.
In a statement this morning, the company announced the plan to hike prices effective 16 August.
The company has attributed the increase in prices to the 25 percent devaluation of the Kwacha and inflationary pressures which have led to a rise in cost of doing business.
“With the recent changes in the 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 part of the statement posted on the TNM Facebook page.
The announcement comes days after TNM’s competitor Airtel Malawi also reduced volumes of its MoFaya bundles while maintaining old prices.
Malawians have since expressed concern over the adjustment and some have faulted the company for prioritizing its shareholders.
“ Looks like your main interest is to protect your shareholders capital. You have left an important element while trying to protect your shareholders, the important part of the equation is the customer. The customer is already suffering the pinch of devaluation in every angle of life. Good business decision would be sharing the burden. Instead of 20 % increase do 10% and communicate that the ideal would have been 20% but for the love and support of our customers we will do 10%. Assuming Kwacha gain value in a miracle way will you take that into consideration by reducing the prices of your services? Big NO,” one person said.
Another said: “While you and your friends are taking pleasure in these upward adjustments of prices, do not forget that people’s earning remain stagnant. This is simply an additional burden to the consumers, on their already burdened cost of living.”
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