Fixed phone and broadband operator Malawi Telecommunications Limited (MTL) says the decision by Press Corporation Limited to offload 80% of its shares in the company, coupled with the MWK1.98-billion it owes Malawi Communications Regulatory Authority (MACRA), will not threaten its operations going forward.
In June this year Press Corporation said it will divest from MTL and cited several challenges within Malawi’s operating environment including inflation, foreign currency depreciation and interest rates.
Malawi’s government, which has a 20% shareholding in MTL, said the company was struggling due to lack of capital investment from the major shareholder (Press Corporation).
In February last year, Malawi Minister of Information and Digitalisation Gospel Kazako said officials were engaging Press Corporation regarding the future of the company.
He was quoted at the time as saying: “MTL possess a lot of questions that everyone must answer and we need to find a solution.”
More than a year later, MTL Chief Commercial Officer Gladson Kuyeri said there is a new investor that will take the company in a new direction, but stopped short of naming the investor.
He added that the debt owed to MACRA will be paid by June next year and assured customers that services would not be compromised.
He underlined the company’s continued investment in 4G and its offer of “cheap and unlimited bundles” to the market. MTL is moving away from dependence on WiMAX, he added.
Kuyeri said, “Our customers should not be worried because the new investor will help the company grow by investing in new technologies. On the issue of debt, we have discussed with MACRA and have agreed. They have given us up to June next year to clear the debt and it will be paid.”