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Key Business Points

• TNM plc seeks to buy Open Connect Limited’s fibre assets to expand its network and support growing demand for data services.
• The Competition and Fair Trading Commission is reviewing the deal to ensure it does not harm competition or lead to higher prices for consumers.
• Analysts say the acquisition could boost TNM’s earnings and share price if valuation and integration costs are managed well.

TNM plc, the Malawi Stock Exchange-listed telecom operator, has proposed to acquire the assets of Open Connect Limited (OCL), a firm that owns a national fibre network providing wholesale capacity to other mobile operators. The move is currently under review by the Competition and Fair Trading Commission (CFTC), which is assessing whether the transaction could reduce competition in the sector.

Capital market analyst Benedict Nkhoma said the deal’s success will hinge on the price paid and the costs of integrating OCL’s network into TNM’s operations. He added that if the acquisition is approved on sound terms, it should strengthen TNM’s long-term infrastructure base and support future growth in Malawi’s rapidly expanding digital economy. Nkhoma urged shareholders to judge the deal by its ability to generate sustainable earnings and improve returns on invested capital. He noted that the CFTC review acts as a safeguard against possible consumer harm through higher prices or reduced choice.

Equity investment analyst Kondwani Makwakwa from Stockbrokers Malawi described the acquisition as strategic. He said it would give TNM tighter control over critical infrastructure, enhance service quality and lower long-term operating costs. Makwakwa expects the transaction to improve operational efficiency, reinforce the company’s long-term earnings outlook and boost investor confidence, which could provide long-term support for TNM’s share price.

Investor Purity Chitalo pointed out that TNM’s 2017 purchase of Burco Limited delivered clear benefits, such as new Wi‑Fi clients and technical expertise. She argued that buying OCL’s fibre network would similarly expand TNM’s infrastructure base, data capacity and enterprise/broadband offering at a time when demand for fibre and wholesale data is rising. Chitalo noted that TNM has executed similar transactions before, suggesting the company has experience in integrating such assets.

Conversely, investment analyst Brian Kampanje warned that shareholders need more information before endorsing the deal. He said the available details do not clearly show economies of scale and urged the company to provide a clearer rationale for the acquisition.

In its statement, the CFTC said it is seeking stakeholder input on the likely impact of the acquisition on competition in the telecommunications centre. The commission emphasized that it is assessing the impact on Malawi’s market of the proposed acquisition of OCL’s assets by TNM.

OCL is 60 percent owned by South Africa’s Harith General Partners through the Pan African Infrastructure Development Fund. Other shareholders include Press Corporation plc (22 percent), Old Mutual Malawi Limited (15 percent), the Malawi Government (two percent) and Nico Holdings plc (one percent). TNM plc’s ownership structure shows PCL holding 43.72 percent, Old Mutual Life Assurance Company Limited 23.57 percent, Nico Life Insurance Company 8.16 percent and the public 24.55 percent.

For local entrepreneurs, the deal signals expanding biashara opportunities in the digital economy, encouraging investment in broadband services and partnerships with established players. Monitoring the CFTC’s outcome will help businesses anticipate market shifts and plan for growth in Malawi’s evolving tech sector.

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