Telekom Networks Malawi (TNM) has increased prices of its voice and data services by 20% effective today.

The company said the adjustment was due to the rising cost of doing business in the country as a result of the 25% devaluation of the local currency, the Kwacha by the Reserve Bank of Malawi (RBM) coupled with inflationary pressures.

In a statement released to the media, the company explained: “As a result, with the recent changes in 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. The changes will be effective August 18, 2022.”

Last month, TNM board chairperson Ted Phiri said while the devaluation of the currency had increased the company’s operating costs, fresh business strategies would spur revenue growth.

Phiri said “It is our inspiration to make good return for the shareholders and we are working hard to mitigate the risks that we experienced and realise better revenue and profit for the company.”

The rise price rise of TNM products and services comes barely a week after the country’s largest operator, Airtel Malawi ended its MoFaya data bundle promotion, reduced data volume by almost half but charged the same prices.

TNM and Airtel Malawi have both publically stated their expectation of profit after tax to be lower year-on-year due to foreign exchange loss resulting from the devaluation of the local currency.

The local currency was devalued in May this year as part of the government’s attempt to ensure that a new International Monetary Fund (IMF) Extended Credit Facility (ECF) is in place to help the country navigate through tough economic conditions.

The Reserve Bank of Malawi said the move was to realign the value of the local currency to market trends and ascertain its true value.