Malawi’s mobile network market: What makes new entrants so hesitant…

We’ve long wondered why none of the biggest telecommunications companies have challenged Airtel and Telekom Networks Malawi duopoly in Malawi, especially given that the country’s telecoms market is failing to reach the maturity levels achieved by some of their neighbouring countries. 

When we took a closer look at the numbers though it became clear why the market is “immature” and why companies with profit-based incentives view the opportunity as untenable at present.

The “gap” in question

It’s important to start by quantifying what we mean when we say that Malawi’s market appears less mature when compared to other countries in the region. The best-case neighbour for this comparison is Zambia. Whilst the two have similar-sized total and working age populations the market penetration outcomes achieved are considerably differently:

The idea that Malawi’s telecoms market is immature simply comes from the following: