Abstract

Malawian mobile phone industry plays a significant role in the social and economic development of the country. It is undoubted factor that it is a lucrative source of corporate tax and various levies collected by government and regulators. Liquidity of the mobile operators is not a matter of choice but very important aspect in protecting the consumers and the local economy as whole as dependence in this sector is ever increasing. This study has identified some serious liquidity problems rocking Malawian mobile industry and these should be cause for concern to central bank, regulators and the financial sector. The results of this study could be used as foundation for health debate in mapping up way forward for rolling out appropriate regulations to protect the economy from few but very powerful industry players instead of concentrating too much on how to collect more levies and taxes from this fragile sector.

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