Bralirwa and Crystal Telecom, two local companies listed on the Rwanda Stock Exchange have reported a significant drop in profit after tax for the year ending 2016.

Bralirwa, Rwanda’s largest beer and soft drinks maker recorded an 80.3 per cent drop in profit, tied to the high cost of financing its foreign debt amid a weak Rwandan franc and high operating expenses.

The brewer’s profit after tax dropped to Rwf1.3 billion ($1.7 million) in 2016 from Rwf7.1 billion ($8.6 million) in 2015, according to audited financial statement submitted by the Rwanda Stock Exchange on April 3.

The brewer is facing higher interest expenses on loans as well as losses following the revaluation of foreign currency denominated liabilities as a result of the devaluation of the Rwandan franc.

Bralirwa has in recent years been on an expansion drive partly financed by foreign debt.

READ: Bralirwa seeks $25m loan to boost production capacity, revenue

Meanwhile, Crystal Telecom, a special purpose vehicle created to manage the 20 per cent stake in MTN Rwanda reported a 10 per cent drop in profits due to growing competition.

While the company has not come out clearly to explain the drop in profits, industry players peg it on growing competition.

The telco's profits dropped to Rwf1.03 billion ($1.39 million) in 2016 from Rwf1.14 billion ($1.25 million) in 2015, according to a financial statement released Friday March 31. MTN Rwanda is facing stiff competition from the Millicom owned and operated Tigo Rwanda, Airtel Rwanda and other data carrier network operators.

Crystal's earnings per share in dropped to Rwf3.82 ( US cents 0.4) in 2016 from Rwf4.26 (US cents 0.5) in 2015.