No Dividends, All Growth: TNM Bets on the Future
Telecom Networks Malawi (TNM) has opted to reinvest its 2024 profits into the business rather than share them with shareholders, marking the third consecutive year without dividend payouts. The bold decision underscores TNM’s strategy to rebuild, modernize its infrastructure, and secure long-term value.
Speaking during the company’s Annual General Meeting held in Blantyre, Board Chairperson Ted Sauti Phiri announced that TNM posted a net profit of K10.05 billion for the year ended 2024 — a turnaround that he called a “sign of revival” following turbulent years.
“TNM’s operational performance in 2024 demonstrated remarkable resilience despite significant macroeconomic challenges,” said Phiri. “We’ve made a profit, yes — but we must use it to address unresolved issues from 2022 and 2023. That means no dividends again this year.”
Phiri pointed to persistent fuel shortages and foreign exchange constraints as key obstacles that disrupted operations, stalled network expansion, and delayed procurement of critical equipment.
Despite these challenges, TNM says the focus is now on reinvesting for network upgrades, capital efficiency, and long-term stakeholder value.
While the dividend drought may disappoint some, Minority Shareholders Association of Listed Companies (MISALICO) Secretary General, Frank Harawa, gave the decision a cautious nod.
“We support TNM’s growth-focused approach,” Harawa said. “But moving forward, management must ensure shareholder value remains central to all financial strategies.”
With K10 billion in profit on the books and a pledge to modernize its network backbone, TNM is clearly signaling one thing: this is a reinvestment year — not a reward year.
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