ECONET Wireless Zimbabwe has reported significant growth in both data and voice usage, with increases of 74 percent and 46 percent respectively for the first quarter ending May 31, 2024, compared to the same period last year.
In its latest trading update, the technology and telecommunications firm said data and voice revenue now contributed 42 percent and 38 percent of the company’s total revenue respectively, a shift from 33 percent and 45 percent respectively in the first quarter of 2023.
“The marked growth in data usage underscores the need for sustained network expansion and upgrades to adequately meet the ever-increasing demand for mobile broadband and digital services,” the company stated.
“With the advent of 5G, IoT, and other cutting-edge technologies, the need for robust, agile, and future-proof network infrastructure has become more pressing than ever.”
During the quarter, Econet commissioned over 30 new sites across the country, enhancing network performance and quality of service. The company said it plans to continue its network modernization programme, extending coverage in urban, peri-urban, and rural areas.
“Increasing our 5G penetration is also a key initiative, with plans to commission additional 5G sites by the end of the financial year,” said the company.
To address the growing utilization of data services, Econet has added functionalities to its core network, transitioning to a cloud-based system that promises better service personalization to meet diverse customer needs.
However, it said it has faced significant challenges due to ongoing power cuts, leading to increased costs for backup power and investment in solar energy.
“Load shedding on the national power grid continues to negatively affect the business through reliance on costly backup power to maintain the requisite network uptime and meet quality of service standards.
“The business continues to invest in renewable energy sources like solar power,” it said.
Following the acquisition of FinTech businesses from EcoCash Holdings, Econet’s mobile money unit delivered a strong performance, driven by a growing active customer base and increased usage of its digital financial services.
The mobile money business saw active customers grow of 189 percent, compared to the first quarter of the prior year, with international remittance values increasing by 265 percent.
EcoCash has also continued its partnerships with Mobile Transfer Agencies from various source markets to terminate into the EcoCash wallet, leveraging its distribution network for customers to access funds. This is expected to drive further growth in remittance values in the coming period.
The synergies between Econet’s digital insurance platforms and mobile money ecosystem have led to increased adoption and cross-selling opportunities.
The life insurance business recorded a 14.2 percent growth in premiums against the last quarter, while Airtime Cover subscriptions under EcoSure exceeded 400,000 by the end of the quarter. Maisha Health Fund saw a 5.5 percent growth in gross premiums compared to the prior period.
Moovah, Econet’s short-term insurance business, recently introduced mobile phone insurance, reinforcing its position as a pioneering leader in the market and reaffirming its commitment to innovation and responsiveness to customer needs.
“We remain dedicated to expanding our offerings and focusing on customer insights to provide comprehensive and tailored insurance solutions, enabled by the Group’s capacity to develop agile products,” said the company.
In the quarter ended May 31, 2024, Econet declared and paid an interim dividend of 0.26 US cents per share.
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ECONET Wireless Zimbabwe, the country’s largest telecommunications and technology company, says its decision to make remittances from United Kingdom and South Africa free has been well received and should remain in force “for the foreseeable future”.
Econet’s group chief executive officer, Dr Douglas Mboweni, said the initiative would remain in place for some time, adding that the company was in fact exploring ways of expanding the free remittance initiative to other routes, such as the United States, Europe and Middle East.
“The initiative will continue for the foreseeable future. We are now actually working on expanding the free remittances to Zimbabwe to other source markets, such as the US, Europe and Middle East, so that Zimbabweans with friends and family in those regions can also benefit from our offer,” Dr Mboweni said.
“However, our group currently does not have licenses that allow us to extend the service to all markets at this time. But we are busy looking at how we can do that,” he said.
Last week Econet achieved an ‘Africa first’ by opening free remittance corridors that completely eliminate the cost for remittances from the UK and South Africa into Zimbabwe.
This followed the company partnering with its sister company, Sasai Money Transfer, to enable individuals and companies in the United Kingdom and South Africa to send money into Zimbabwe free of charge, with the receiver cashing out of their EcoCash US dollar wallet for free.
Dr Mboweni said the market reaction to the initiative had been very positive, adding that he expected many people to start channelling remittances via Ecocash.
He said there were virtually no minimum limits to how little one can send at any given time. “If someone from the UK wants to send $5 to someone in Zimbabwe, it’s ok with us. We can handle small or large amounts and it’s done in an instant.”
“We believe EcoCash’s extensive network, already in use for domestic USD transfers around the country, and in particular in the rural areas, will be key in providing convenience to people in remote villages and districts to access their funds,” Dr Mboweni said.
Last week Dr Mboweni explained that the decision to offer free remittances had been motivated by the desire to help Zimbabweans weather the challenges caused by drought.
The country recently declared a national disaster over a drought caused by the climate event known as El Niño, which has left more than 2.7 million people in need of food aid.
Some analysts and experts have urged the Government to take advantage of the intermediation role of Ecocash to allow ZiG cash-in and cash-out, thereby building confidence in the new currency.

In a trading update for the third quarter ended November 30, 2023, the Zimbabwe Stock Exchange-listed giant urged the authorities to come up with regulations that benefit consumer and businesses.
ECONET Wireless Zimbabwe has called for balanced regulation in the telecommunications sector, given the rising operational costs driven by inflation and the shift to using the greenback.
In a trading update for the third quarter ended November 30, 2023, the Zimbabwe Stock Exchange-listed giant urged the authorities to come up with regulations that benefit the consumers and businesses.
“Due to the high inflationary pressures, the business is calling for balanced regulation, an important step given the rising operational costs driven by inflation and the shift to using the US dollar,” the firm said.
“It is essential to find a middle ground where tariffs remain practical for the business without becoming unaffordable for consumers.” The annual inflation rate stood at 26,5% in December last year.
Econet said regional benchmarks reflected that local telecommunication tariffs remained much lower. The low tariff comes despite Zimbabwe’s telecoms firms experiencing higher costs and foreign currency challenges.
According to a report by the Postal and Telecommunications Regulatory Authority of Zimbabwe, the growth in market share for voice and data services points to Econet’s success in delivering value to its customers.
“The increased consumption and usage patterns show that ongoing investment in network infrastructure is imperative. Econet voice market share increased slightly and data market share decreased marginally. Other key metrics such as base station and 4G base station market share continue to improve,” it said.
The firm said the continued increase in data traffic reflected the changing consumer behaviour and the evolving usage patterns towards data intensive applications such as video streaming, social media engagement and online gaming which required commensurate capital expenditure in order to continue to provide quality service.
“This will require a supportive tariff regime given the inflation trends.“In order to sustain the quality of services amid higher usage rates, there’s a need for tariffs that support the business, especially as inflation impacts capital spending,” it said.“Implementing cutting-edge network technology, optimising spectrum utilisation and increasing network density is necessary to manage growing data traffic and maintain a resilient network.”
The company said it had been actively developing its network capabilities and securing its services in response to the digital economy’s expansion and the growing need for mobile services.
This has allowed the business to continue thriving despite facing external pressures.“To mitigate the negative impact of power outages, the business continues to invest in solar solutions. To counter the impact of vandalism and theft, the business has invested in enhanced security systems which have become even more critical in the current socio-economic environment.”
Inflation-adjusted revenue for the period under review increased by 177% from ZWL$0,8 trillion relative to the same period last year.The growth in voice and data traffic of 28% and 26%, respectively was largely anchored on network modernisation.
Exchange losses continued to weigh down the financial performance of the business. For the period under review, exchange losses were 20% of revenue against a prior period comparative of 26%.
The company said after the successful settlement of debentures in September 2023, the exchange losses exposure was significantly reduced and this should improve the business performance going forward.

Zimbabwe’s largest telecommunications and technology company, Econet Wireless, has achieved an Africa first by opening two free remittance corridors into the country, completely eliminating the cost to both sender and receiver.
Econet has partnered with its sister company, Sasai Money Transfer, to enable individuals and companies in the United Kingdom and South Africa to send money into Zimbabwe free of charge, starting today (May 2, 2024). The receiver also cashes out of their EcoCash wallet for free.
International remittances currently attract a charge of up to 15% for the sender, while the receiver is charged 3% when cashing-out.
Econet Wireless Zimbabwe CEO Dr Douglas Mboweni explained that the latest decision is aimed at helping Zimbabweans to weather the acute challenges caused by the drought.
The country recently declared a national disaster over a drought caused by the climate event known as El Niño, which has left more than 2.7 million people in need of food aid.
“We hope Zimbabweans in the Diaspora will use the savings to send more money home to their families,” Dr Mboweni said.
“The majority of remittances to Zimbabwe are conducted through these two main corridors (the UK and South Africa). We don’t have to pay any third parties on those corridors, because we rely on a sister company in the group, which agreed to help out,” he said.
The Econet CEO said he hopes the move by Econet will encourage other companies facilitating remittances into Zimbabwe to reduce their fees, noting that it was time that remittances into Africa in general were brought down “to assist with the continent’s economic development agenda”.
Dr Mboweni added that the initiative was in support of government efforts to increase diaspora remittances coming into the country through formal channels.
Econet’s extensive EcoCash agent network ensures that even people in remote rural areas have access to low-cost financial services, reducing the need for recipients to travel long distances to collect cash.
Econet said Remittance transfers will be facilitated through the EcoCash US dollar wallet, which is accessible by dialling *153# on an EcoCash registered Econet line.
Senders in the UK and South Africa can access Sasai Money Transfer by downloading the Sasai Money Transfer App on the Google Play Store and on the App Store.

Ecocash Holdings Zimbabwe shareholders have approved its proposed sale of six assets to Econet Wireless Zimbabwe, the biggest mobile network operator in the nation, taking the deal a step close to completion, Business Times can report.
A vote was taken at an extraordinary general meeting (EGM) held on April 17 2024 in the capital Harare.
The latest development was revealed by Ecocash Holdings’ group company secretary Charmaine Daniels.
This means that Econet Wireless Zimbabwe will take over management of Ecocash’s mobile money division, VAYA Technologies, MARS Zimbabwe, Econet Life, Econet Insurance, and Maisha Health subject to regulatory approvals.
The separately listed companies announced that they are planning to undergo a scheme of reconstruction, which involves the issue of ordinary share capital by a company to the shareholders in another company. Ecocash Holding’s sole subsidiary, Steward Bank, will continue to exist, which may indicate that a new brand is required.
Daniels added that in return Ecocash Holdings will get ZW$509bn which is equivalent to 521,861,057 Econet shares.
“That, subject to Regulatory approval, the directors are authorized to carry out a Scheme of Reconstruction between Econet and EcoCash Holdings by transferring to Econet the Financial Technology Businesses namely EcoCash (Private)Limited, VAYA Technologies Zimbabwe (Private) Limited, Econet Insurance (Private) Limited, Econet Life (Private) Limited, MARS Zimbabwe (Private) Limited and Maisha Health Fund (Private) Limited, in exchange for the total consideration of ZWL$509bn (equivalent to 521,861,057 Econet Shares) payable partly in cash and partly in Econet Treasury Shares,” Daniels said.
Furthermore, Daniels stated that the amount of Econet Treasury Shares will be ascertained by utilizing the Econet 30-day volume weighted average price for the period ending on January 16, 2024, which is the latest feasible date just before the transaction’s public announcement.
Additionally, the 30-day volume weighted average price of each Econet share for the period leading up to the payment date will be used to calculate the amount of the cash component of the total consideration.
Under the terms of the swap deal, Ecocash investors will receive Econet shares in return.
Essentially, the entities that will be absorbed by Econet Wireless Zimbabwe, are taking a significant component back to Econet Wireless Zimbabwe.
Interestingly, Econet and Ecocash, which were formerly a single company, intend to reunite once more after their 2018 split.
The new company was renamed to Ecocash Holdings in 2021 after being listed under the name Cassava Smartech.

ICT Minister Dr, Tatenda Mavetera (wearing AR goggles) gets an immersive experience of Econet’ Augmented Reality products
Econet Wireless Zimbabwe’s stand at the 64th edition of the Zimbabwe International Trade Fair (ZITF), has drawn the praise of the Minister of Information Communication Technology, Postal, and Courier Services, Dr Tatenda Mavetera.
The country’s leading telecommunications and technology company, which is this year once again exhibiting at the country’s premier business and trade exhibition, is showcasing consumer and business products and services spanning telecommunications, digital and fintech, among others.
Minister Mavetera, who visited Econet’s stand yesterday (Thursday), expressed her delight at the creative design of the stand, and the digital innovation showcased by the products and services on display at the stand.
“Econet’s stand embodies the spirit of the ZITF theme: ‘Innovation: The Catalyst to Industrialisation and Trade’,” the minister remarked members of the media during her tour of the stand.
“It aligns with our government’s vision of promoting industrialization through technology and innovation.”
Dr Mavetera also commended Econet for heeding the government’s call to empower young people.
“I am pleased to see Econet supporting young entrepreneurs and start-ups, which is crucial for economic growth,” she added.
Econet’s stand, in Hall 4, is a spectacle of interactive digital displays of its current services, engaging live LED screens showcasing product use cases, such as gaming stations, as well sneak previews into the future, characterized by immersive Augmented Reality (AR) as well as Virtual Reality (VR) capabilities and demos, that visitors to the stand have been sampling and trying.
In addition, Econet also added a 3D Digital Billboard chronicling Econet’s journey with its customers over the past 26 years.
Visitors in need of any of Econet’s products and services are able to purchase them, with the support of friendly customer service representatives.Some of the Econet’s group brands on display at the Econet stand include Buddie Beatz, EcoCash, Moovah, Maisha, EcoSure, Vaya Technologies and Akello, among others.

Zimbabwe’s largest telecommunications and technology company, Econet Wireless, has achieved an Africa first by opening two free remittance corridors into the country, completely eliminating the cost to both sender and receiver.
Econet has partnered with its sister company, Sasai Money Transfer, to enable individuals and companies in the United Kingdom and South Africa to send money into Zimbabwe free of charge, starting today (May 2, 2024). The receiver also cashes out of their EcoCash wallet for free.
International remittances attract a charge of up to 15% for the sender, while the receiver is charged 3% when cashing-out.
Econet Wireless Zimbabwe chief executive, Douglas Mboweni explained that the latest decision is aimed at helping Zimbabweans to weather the acute challenges caused by the drought.
The country recently declared a national disaster over a drought caused by the climate event known as El Niño, which has left more than 2.7 million people in need of food aid.
“We hope Zimbabweans in the Diaspora will use the savings to send more money home to their families,” Mboweni said.
“The majority of remittances to Zimbabwe are conducted through these two main corridors (the UK and South Africa). We don’t have to pay any third parties on those corridors, because we rely on a sister company in the group, which agreed to help out,” he said.
He said he hopes the move by Econet will encourage other companies facilitating remittances into Zimbabwe to reduce their fees, noting that it was time that remittances into Africa in general were brought down “to assist with the continent’s economic development agenda”.
Mboweni added that the initiative was in support of government efforts to increase diaspora remittances coming into the country through formal channels.
Econet’s extensive EcoCash agent network ensures that even people in remote rural areas have access to low-cost financial services, reducing the need for recipients to travel long distances to collect cash.
Econet said Remittance transfers will be facilitated through the EcoCash US dollar wallet, which is accessible by dialling *153# on an EcoCash registered Econet line.
Senders in the UK and South Africa can access Sasai Money Transfer by downloading the Sasai Money Transfer App on the Google Play Store and on the App Store.

Econet Wireless Zimbabwe has announced that it has suspended trading in the ZWL currency as it works to configure the changeover from ZWL to the new ZiG currency on its various product platforms.
Econet Wireless sells its core voice, data and SMS products through a wide variety of packages, including the popular voice and data ‘bundles’ (promotional offers with a validity period) sold through digital (electronic) and physical channels.
Following the Monetary Policy Statement on Friday (April 5, 2024), and the introduction of a new ZiG currency, Econet said it was preparing its systems to allow trading in the new currency.
“We would like to advise our valued customers that we are currently in the process of configuring our systems to allow the changeover from the ZWL currency to the new ZiG currency in compliance with Statutory Instrument (SI) 60 of 2024,” the company said in a statement.
“Customers can however still purchase all our products and services in US dollars (USD), using our normal sales and distribution channels,” the statement said, adding that it would be able to trade in the new ZIG currency by Monday, April 8, 2024.
Econet’s distribution channels include its own Econet Shops, as well as its dealer shops. Econet also sells its products via a wide network of merchants, which includes retail and supermarket chains such as in OK, Bon Marche and Pick ’n Pay, along with online and digital platforms, including EcoCash, Zimswitch and several commercial banks.
Econet also addressed the issue of customers that had bought airtime or data before the changeover.
“In the case of customers who bought bundles before the ZWL currency suspension, their bundles will continue to be available for their use until they either expire or are used up by the customer. However, the main account balance will be converted to ZiG at the going rate during the ongoing the transition.”
“We regret any inconvenience the changeover may cause our customers,” Econet said.
The listed telecommunications company joins hundreds of businesses – including banks and several retailers across the country – that issued statements to their customers on Friday night and on Saturday, notifying them of the suspension of the ZWL sale of their products and services, as the companies work on the transition to the new currency.

Over the past few months, mobile users have experienced declining service delivery in voice and data while also bemoaning the rapid increase in the costs related to those services.
THE Telecommunications Operators Association of Zimbabwe (Toaz) says the sector urgently need investment to boost coverage amid poor service delivery.
Over the past few months, mobile users have experienced declining service delivery in voice and data while also bemoaning the rapid increase in the costs related to those services.
In a statement yesterday, Toaz said the sector had been failing to secure foreign currency to upgrade and maintain the networks.
In addition, the sector is dealing with existing debts related to hiring external players to service their infrastructure because of the foreign currency challenges.
“Once installed, ICT equipment typically remains functional for a period of 3 to 7 years. The crucial elements of telecommunications infrastructure, mainly consisting of software and hardware, tend to last about 5 years. To ensure these networks operate optimally, significant software updates are required annually and sometimes more frequently, for the networks to continue to function optimally,” Toaz said.
“These updates, crucial for maintaining network performance, require significant investment in foreign currency. Without continuous investment, most of the equipment is rendered obsolete and unable to continue to carry the network capacity requirements for which it was designed.”
Toaz said that it was working with the Ministry of ICT, Postal and Courier Services and the Postal and Telecommunication Regulatory Authority of Zimbabwe.
The sector said data consumed increased more than five-fold to 117,21 petabytes from 35,73 in the period 2019 to 2023. This increase in traffic reflects the pricing dynamics of mobile data in the country, where prices have come down significantly over time,” the sector said.
“Social networking sites, which account for over 60% of data, are the most popular applications. This near five-fold increase in consumption since 2019 demonstrates an urgent need for enhanced investment in network capacity, leading to quality and service issues that can be resolved through comprehensive investment strategies aimed at addressing underserviced areas as well as boosting coverage and capacity in the cities and towns.”
Toaz said significant commitment had been demonstrated by all critical stakeholders which the association believed would go a long way in addressing some of the challenges facing the sector.
“The telecommunications sector is facing a significant challenge due to the need for substantial foreign currency investments, in an environment where foreign currency is scarce. Additionally, the sector is grappling with foreign currency debts from financing infrastructure prior to 2018,” Toaz said.
“The current economic climate offers no long-term financing options, and there is a pressing need for such funding for capital projects. Ongoing consultations aim to find solutions that will ensure that the sector remains operational and can sustain itself over time.”
The association added that the inability to charge cost reflective tariffs was also making it difficult to raise capital as individual players in the market.
Last year, mobile operators reported capital expenditures of ZWL$191,87 billion, up from ZWL$16,91 billion in the prior year.
However, these amounts were negligible as the local currency depreciated by over 500% and 700% in 2022 and 2023, respectively.

The country’s biggest telecommunications company, Econet Wireless Zimbabwe, says it is taking bold and practical steps to empower women and create a more equitable world by tripling the number of women-owned businesses in its supply chain within the next year.
The company’s deputy chief executive officer, Mr Roy Chimanikire, said the Zimbabwe Stock Exchange-listed company is cultivating resilience within its supply chain by increasing the number of women business partners three-fold.
“This year, we are targeting a total of 15 percent women-led businesses within our 400-strong supplier base,” said Mr Chimanikire.
“The commitment really goes beyond just numbers; it’s about intentionally creating opportunities, dismantling barriers and creating a diverse and inclusive environment where women entrepreneurs can flourish.”
The initiative, he said, was part of Econet’s diversity, equity and inclusion (DEI) strategy, which aims to empower women entrepreneurs and businesses, as well as cultivate a resilient and thriving ecosystem of diverse suppliers.
Econet recently signed a supplier diversity and inclusion partnership agreement with the Women-Owned Business Trust (WOBT), a trust dedicated to helping women access markets and scale their businesses.
The telecommunications and technology company said the SDI was intended to increase its procurement expenditure on women-owned businesses and female entrepreneurs.
Mrs Sharon Marufu, Econet’s chief supply chain officer, said collaborating with and engaging diverse suppliers, including women-led businesses, will strengthen communities across the value chain and lead to greater long-term economic growth.
“Diversifying your supply chain can lead to increased innovation and competition. A diverse supply chain encourages competitive bidding among suppliers, resulting in cost savings and higher-quality products as suppliers strive to meet industry standards. Embracing diversity not only fosters equal opportunities but also drives excellence in quality across the board,” she said.
Earlier this month Econet, in conjunction with the WOBT, hosted a first-of-its-kind breakfast meeting aimed at exploring areas of greater partnership between Econet and female entrepreneurs.
Mrs Marufu said supply chain diversity and inclusion promote social equity and economic development by creating job opportunities for marginalised communities and promoting fair and ethical practices throughout the supply chain.
“By implementing diversity and inclusion into our supply chain strategies, Econet can contribute to building a more sustainable and equitable future,” she said.