Malawi’s foreign currency crisis has slowed the planned launch of Malcel, a new mobile network operator.
Malcel's CEO and founder, Boniface Ndawala, told MBCDigital that the company's capacity to acquire critical network infrastructure and equipment from international vendors was severely hampered due to a lack of access to foreign currency.
He stated that the foreign currency issues disrupted capital spending plans and pushed the company to reconsider the timing of its commercial launch.
“Most of the core network equipment and supporting infrastructure have to be sourced externally, and without reliable access to foreign currency, it became extremely difficult to meet our initial rollout targets,” Ndawala said.
Malcel had planned to invest over $220 million in the project, but progress has halted as foreign exchange shortages have become widespread across the country, hurting various capital-intensive businesses.
Nonetheless, Ndawala staid the company has now found a co-investor, whose participation is intended to alleviate finance constraints and help offset foreign currency risks involved with the rollout.
“As soon as conditions are favourable, our co-investor will help drive the commercial rollout of Malcel’s services,” he said, adding that the company remains cautious about launching under conditions that could compromise service quality or network stability.
In addition to mobile connectivity, Malcel intends to launch a digital financial services platform called M-cash.
Ndawala stated that the platform is meant to promote financial inclusion, but it, like the network rollout, is dependent on more access to foreign exchange for technology deployment and system integration.
Despite delays in full national rollout, Malcel's network is operational at a limited capacity in Lilongwe, where it made its first test call in October 2024.
Ndawala said the limited operations are required to meet regulatory obligations and keep the company's operating licence as it awaits improved foreign currency availability to support a full commercial debut.
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