The report, which was released last week, showed that Econet did better than its peers in the key performance categories of mobile internet and data usage, as well as in mobile voice usage.
The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz)’s sector performance report for the 3rd quarter of 2023 has revealed that Econet Wireless Zimbabwe extended its market leadership in the local mobile telecommunications sector dominated by three main players: Econet, NetOne and Telecel.
The report, which was released last week, showed that Econet did better than its peers in the key performance categories of mobile internet and data usage, as well as in mobile voice usage.
It revealed that Econet increased its mobile internet and data market share by 6.3%, from 72.0% in Q2 to 78.3% in Q3. This followed a 15.5% surge in the company’s mobile internet and data traffic to 34 985 422 241 Megabytes (MB) in the third quarter, up from 30 299 361 678 MB in the previous quarter.
“NetOne recorded a decline in internet and data traffic by a margin of 18.9%. Despite the decline by NetOne, total Internet and Data traffic for mobile network operators increased significantly by 6.2%, owing to a 15.5% growth in traffic by Econet. Telecel also experienced a huge jump in Internet traffic,” read the report.
Potraz said overall mobile internet and data traffic increased by 6.2% to record 44,67 Petabytes in the third quarter, from 42,06 Petabytes recorded in the second quarter of 2023. (A Petabyte is about 1 million Megabytes).
In the mobile voice traffic category, Econet increased its market share by 4.3% in the 3rd quarter to 82.9%, while NetOne lost market share by the same margin, to exit the 3rd quarter at 16.9%. Telecel maintained its voice traffic market share at 0.2%.
Potraz noted that mobile voice traffic grew significantly, by 30.0%, to record 3.29 billion minutes in the 3rd quarter, up from 2.53 billion minutes recorded in the second quarter of 2023.
“The sector realised growth in mobile voice traffic in the third quarter of 2023. This may be attributed to an eroded voice tariff which fluctuated around USD 0.01 (One USD cent) for on-net calls throughout the quarter,” said Potraz.
“On-net bundles and promotions by operators also played a big role in the significant growth in traffic, which resulted in a 37.5% surge in net-on-net traffic, which is without doubt the major traffic growth driver in the quarter under review.”
The regulator added that the total number of active mobile telephone subscriptions grew by a margin of 6.0% to reach 14 794 579 as of 30 September 2023, up from 13 955 937 recorded in the second quarter.
“As a result, the mobile penetration rate hiked to 97.5% from 91.9% recorded in the second quarter of the year,” said Potraz.
In the period under review, Econet saw its subscribers rise to 10 319 991, from 10 094 328 in the second quarter (a 2.6% drop in customer market share), while NetOne subscriber numbers went up from 3 554 075 in the previous quarter to 4 171 224 in the 3rd quarter (a 2.7% increase).
Telecel was, however, the only mobile network operator to register negative growth in subscribers, with the company’s subscriber numbers falling by 1.4% to 303 364 in the third quarter.
Meanwhile, mobile network operators generated $850.8 billion in the third quarter of 2023, up from $435.7 billion recorded in the previous quarter. This translates to a 95.3% revenue growth in the quarter under review.
On the other hand, mobile network operators incurred $430 billion in costs, up from $215.8 billion incurred in the previous quarter, translating to a 99.3% increase in total operating costs.
The telecommunications regulator noted that total capital expenditure by mobile network operators grew by 27.1%, from $26.7 billion in Q2 to $33.9 billion in the 3rd quarter.
“However, in real terms, revenues, operating costs and capital expenditure did not increase by the same margins due to the inflationary operating environment which has not spared any sector of the economy. This continues to stifle investment in infrastructure as evidenced by a decline in new terrestrial deployments in the quarter under review,” added the regulator.

Econet Wireless Zimbabwe, the country’s largest telecommunications and technology company, says it would be expanding its 5G network and utilising artificial intelligence (AI) and automation to enhance customer service and operational efficiency, Business Times can report.
James Myers, the chairman of the Econet board, disclosed this, stating that expanding on the 5G network creates new prospects for the business.
“We are looking to scale up our 5G penetration to unlock new opportunities, leverage artificial intelligence and process automation to improve operational efficiencies and customer service delivery,” Myers said.
He said AI has become an integral part of their business operations.
According to Myers, Econet increased its usage of AI in 2023 to boost productivity, improve operational efficiency, optimise their business and deliver better customer experiences.
He said the company pledges to continue investing in the infrastructure for them to meet their customer needs and keep up with global trends.
“The business continues to experience sustained growth in the demand for its products and services shaped by evolving customer needs. We will continue to invest in our network infrastructure in order to meet customer demands and keep abreast with global trends in line with our vision of a digitally connected future that leaves no Zimbabwean behind,” Myers said.
In its financial results for the 12 months to February 29, 2024, Econet more than doubled its revenue to ZW$14.8 trillion from ZW$6.3 trillion achieved in the previous year.
Investment in network modernization resulted in volume growth of voice and data of 34% and 36% respectively.
However, Econet’s loss widened to ZW$1.1 trillion for the period under review from ZW$317bn reported in 2023.
Myers said the depreciation of the local currency during 2023 affected the group’s financial performance.
Exchange losses for the period under review were ZW$ 3.2 trillion translating to 22% of revenue against 23% for the prior year.
He said the group is looking forward to benefiting from Zimbabwe Gold (ZiG) since the hyperinflation of ZW$ affected the financial statements.
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 175% to ZW$7.1 trillion for the period under review from ZW$2.6bn recorded prior comparative period.

Econet Wireless Zimbabwe says it remains committed to completing current network modernisation initiatives, which will transform network performance, expand coverage, and increase capacity to support changing customer demands for data-intensive applications.
In a trading update for the quarter to November 30, 2023, the company said it will leverage new technologies to enhance the potential for better financial performance through improved customer experience and lower costs.
“The company’s strategic focus on fostering solutions centred around the customer, prioritising security, engaging with regulatory bodies, and investing in infrastructure sets it in a strong position amid the challenges present in the current economic landscape,” reads the statement.
The company said after the successful settlement of debentures in September 2023, the exchange loss exposure was significantly reduced, and this should improve the business performance going forward.
The company successfully closed the renounceable rights offer of new ordinary shares in the capital of the company to raise US$30,3 million, and proceeds from the rights offer were applied to redeem debentures issued by the company, which matured at the end of April 2023.
“Ordinary shares amounting to 401 586 371 were issued and commenced trading on the Zimbabwe Stock Exchange on October 9, 2023,” the company said.
For the quarter under review, revenue increased by 177 percent from $0,8 trillion relative to the same period last year.
The company said growth in voice and data traffic of 28 percent and 26 percent, respectively, was largely anchored on network modernisation.
However, for the period under review, exchange losses were 20 percent of revenue against a prior period comparative of 26 percent, and they continue to weigh down the financial performance of the business.
According to a report by POTRAZ, the growth in market share for both voice and data services points to the company’s success in delivering value to its customers.
It said 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,” reads the statement.
Econet added that the continued increase in data traffic reflects changing consumer behaviour and evolving usage patterns towards data-intensive applications such as video streaming, social media engagement, and online gaming, which require commensurate capital expenditure 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 amidst higher usage rates, there’s a need for tariffs that support the business, especially as inflation impacts capital spending,” the group company said.
It indicated that implementing cutting-edge network technology, optimizing spectrum utilisation, and increasing network density is necessary to manage growing data traffic and maintain a resilient network.

The businesses being transferred to EWZL under the scheme of reconstruction are expected to leverage the mobile network operator’s customer base
The scheme of reconstruction between Econet and EcoCash Holdings is taking shape following approval by shareholders and is now awaiting regulatory approvals.
At an extraordinary general meeting held on April 17, 2024, 85,92 percent voted in favour of the resolution, while 14,08 abstained.
The scheme of arrangement entails 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 ZW509 billion (equivalent to 521,861,057 Econet Shares), payable partly in cash and partly in Econet Treasury Shares.
“Subject to regulatory approval, the directors are authorised to carry out a scheme of reconstruction between Econet and EcoCash Holdings by transferring to Econet the financial technology businesses…
“The number of Econet Treasury shares shall be determined using the 30-day volume-weighted average price of Econet for the period to January 16, 2024, being the last practicable date immediately before the transaction was announced to the public.
“The amount of the cash component of the total consideration shall be determined using the 30-day volume-weighted average price of each Econet share for the period to the date of payment,” reads the Ecocash Holdings announcement.
As of the date of the EGM, the total number of shares issued by the company was 4,194,797,929, of which 4,501,610 shares were held by Ecocash Holdings, 714,327,691 shares were held by Econet Wireless Zimbabwe Limited (“Econet”) and 1,362,170,095 shares were held by Econet Global Limited.
The shares held by Ecocash Holdings, Econet, and Econet Global Limited amounting to 2,080,999,396 were precluded from voting, accordingly, the total number of eligible shares entitling the holders to attend and vote on the resolutions proposed at the EGM was 2,113,798,533.
In earlier separate cautionary statements, the companies have said the envisaged scheme of reconstruction will not result in the delisting of both EcoCash and Econet from the Zimbabwe Stock Exchange (ZSE).
One of the most direct ways in which the transfer of assets can affect share prices is through its impact on the financial performance of the companies involved.
The transfer of underperforming assets from one company to another also has the potential to improve that particular company’s financial position, which includes revenue growth, profit margins and return on investment, thus attracting more investors, which results in an upward pressure on share prices.
On the other hand, if not done strategically, asset transfers can erode investor confidence and lead to a decline in share prices.
Morgan and Co in its market intelligence report on the transaction earlier in the year, said what remains unclear is what constitutes a banking asset, and this warrants a scenario analysis that covers the possible outcomes of this transaction.
“Our rationale finds context in Econet’s transaction that unbundled Ecocash in 2018. At the time, Ecocash was listed as a standalone entity with the potential to grow into Zimbabwe’s first listed fintech business.
“However, structural and fundamental changes such as (1) the ban on merchant lines, stringent regulation, dollarisation, and (iv) stiff competition in mobile USD transactions are a crunch in ZWL and have wilted the business’s future prospects.
“We opine that these developments have warranted this transaction, and this is not the first time that transactions have been reversed in Zimbabwe,” said Morgan & Co.
It was noted that, as far as this transaction is concerned, Econet investors are the losers regardless of how it defines a banking asset.
The firm said in the first scenario that it defines digital banking operations (Steward Bank) as Ecocash’s only banking asset and assumes that the transaction refers to assets in the mobile money and insurtech segments.
“As such, these non-banking assets encompass Ecocash, Econet Life, Econet Insurance, Vaya Technologies, Maisha Health Fund, and Mars.
“A look at the performance of these non-banking assets reveals losses from FY23 to date,” reads the report.
It added that both the mobile money and insurtech segments recorded inflation-adjusted losses in FY23 and FY24.
“Only the banking segment was profitable in both periods, as a result, moving these, no banking assets will have the effect of lowering earnings in Econet.”
Morgan & Co noted that it looks like the impact will be material considering that the combined losses of these non-banking assets in 1H24 account for 32 percent of Econet’s net earnings over the same period.
“However, if we incorporate that post-rights offer, Ecocash’s bottom line will circumvent exchange losses equating to 77 percent of revenues compared to Econet’s exchange losses equal to 34 percent of revenues, and since these exchange losses are not split by segment in Ecocash’s latest results, it becomes unclear whether the impact is as damning to Econet shareholders as initially suggested.
“We also opine that Econet is still undervalued at the current price, and exchanging these unprofitable non-banking assets for an undervalued stock benefits Ecocash shareholders more than Econet shareholders,” said Morgan & Co.
In the second scenario, it is said that banking assets incorporate both mobile money and digital banking assets, in which case the damage to the value of Econet shareholders will be relatively minimal when compared to the first scenario.
Morgan & Co said the impact of the transaction on these companies’ valuations favours EcoCash, and after the transaction, EcoCash will have exchanged loss-making assets in exchange for an undervalued asset.
“Although we need more information to ascertain the magnitude of the changes and how they impact the valuations of both entities, we remain confident that Econet continues to hold potential exceeding 20 percent in USD.”
In the worst-case scenario, Morgan & Co estimates that Econet FY24 earnings per share in USD will decrease by 13 percent and the upside potential in Econet will soften from 80 percent to 60 percent.
Ecocash, on the other hand, could experience an increase in its potential upside that will be as high as 35 percent in real dollars, mostly on the back of a disposal of loss-making operations and a holding in an undervalued stock.
However, Ecocash Holdings revenue for the quarter to November 30, 2023, increased 83 percent to $182,9 billion in inflation-adjusted terms, compared to $99,8 billion in FY23.
During the same period, Econet Wireless revenue increased by 177 percent from $0,8 trillion relative to the same period last year, anchored by growth in voice and data traffic of 28 percent and 26 percent, respectively, due to network modernisation.
However, exchange losses continued to weigh down the financial performance of the business, as the losses were 20 percent of revenue against a comparative 26 percent.
The company, however, noted that after the successful settlement of debentures in September 2023, the exchange loss exposure was significantly reduced and this should improve the business performance going forward.

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.

THE value of Econet Wireless Zimbabwe shares nearly doubled in four days of trading on the Zimbabwe Stock Exchange as investors appear to warm up to a cautionary statement released last Tuesday, announcing a planned merger of EcoCash Holdings Zimbabwe’s non-banking units with the mobile network operator.
After the announcement on Tuesday, the Econet stock price witnessed a 65.7% jump from 122980 cents to conclude the week at 203900 cents (ZWL2,039) at the close of trading yesterday (Monday).
At the same time, EcoCash Holdings Zimbabwe’s stock experienced a notable increase in share price of 23.6%, rising from 20568 cents to 25425 cents at the close of trading yesterday.
Figures from the ZSE show that Econet stock initially rose 14% last Wednesday, reaching 136931 cents before rising further to 154766 cents on Thursday. The positive momentum continued as the company’s stock price witnessed an additional 12.53% increase, ultimately closing the week at an impressive 177347 cents before it rose to 203900 cents in early week trading yesterday.
Market analysts said while there were widespread gains across a number of counters on the bourse last week, the sharp rise in Econet’s share price was indicative of the market’s confidence in the impending merger. They said the trend pointed to potential sustained growth in the post-merger landscape, as investors exhibit a robust belief in the combined entity’s prospects.
“As the entities merge, a robust and resilient balance sheet is poised to emerge, comprised of well-diversified entities with the capacity to underwrite more business, ultimately creating substantial value and benefits for shareholders,” said George Nhepera, a Bulawayo-based financial market analyst.
“In the broader context, it is essential to note that the combined market capitalization of the two entities on the Zimbabwe Stock Exchange is likely to position the new entity as one of the largest conglomerates in the country. This development bodes well for the capital markets, instilling confidence among both local and international investors,” he added.
Jonathan Makombe, a South Africa-based equity analyst said the proposed Econet/EcoCash Holdings merger was a smart move that could redefine the landscape of both the telecommunications and digital finance sectors.
“The market’s positive response is a clear indication of investor confidence in the potential growth and innovation that may result from this union,” he said.
The decision by the two technology powerhouses to merge comes at a strategic juncture, as the global business landscape is rapidly evolving. By combining forces, Econet and EcoCash Holdings aim to position themselves at the forefront of innovation, creating a formidable entity capable of navigating the dynamic challenges of the modern business environment.
“The market’s enthusiastic reception is well-founded. This merger has the potential to benefit shareholders and provide a more integrated and seamless experience for consumers,” remarked David Ngoma, an analyst at a leading investment firm.
Investors and industry experts alike are closely watching the development, anticipating the creation of a formidable entity capable of navigating the dynamic challenges of the local business environment.
“Business models must respond to the times, and this is what Econet is doing,” said economic analyst Tinashe Murapata.
“Perhaps (this is) what we all need to be doing in light of tax, currency, macroeconomic conditions, and regulatory challenges that inspire consolidation rather than specialisation,” he added.
Jane Sibanda, a financial strategist, highlighted that the merger presents a unique opportunity for Econet and EcoCash to leverage their strengths, creating a more resilient and competitive player in the market.
“This move aligns with the broader trend of consolidation we have observed across industries,” she said.

Econet Wireless Zimbabwe has been commended for empowering female entrepreneurs and promoting the growth of women-owned businesses, facilitating their active participation in the mainstream economy.
Chairperson of the Women Alliance of Business Associations in Zimbabwe (WABAZ) Irene Mukarakate said Econet’s role in providing a platform for women to build capacity, achieve sustainable growth, access capital and markets, and ultimately realise long-term success was commendable.
“I would like to commend Econet for coming on board and for seeing the need for inclusive procurement policies that empower women.
“In recognition of what the women in business are doing, corporates must (emulate Econet) and build relationships with women-owned businesses, and women’s business organisations,” Mukarakate said last week, at unique “Meet-the-Buyer” breakfast meeting, jointly hosted by Econet and the Women-Owned Business Trust (WOBT).
She encouraged women to venture into business, highlighting its potential to enhance market availability, especially in times of global pandemics. She stressed that the growth of women’s businesses plays a crucial role in building resilience, citing the challenges faced by many women-owned businesses during the COVID-19 lockdown period.
“A holistic approach is necessary to scale women’s businesses; the finance markets, skills, and technology must all come into place. A multi-stakeholder approach is therefore imperative,” Mukarakate said.
In April last year Econet affirmed its commitment to diversity, equity, and inclusion by entering into a Supplier Diversity and Inclusion (SDI) partnership agreement with the Women-Owned Business Trust (WOBT).
Since then, Econet has substantially increased its procurement expenditure on women-owned businesses, doubling it from 2.5% to over 5% ahead of its own target for the year, and demonstrating the company’s commitment to creating a more inclusive business environment.
WOBT chairperson and Securico Security founder Dr Divine Ndhlukula lauded Econet for providing a tailored programme to provide the necessary support for women entrepreneurs to help them succeed in today’s global market.
“We have an opportunity to work with one of Zimbabwe’s economic giants as their (procurement) spending is huge, with a commitment of 5% for year 1, 10% for year 2, and 15% in year 3. The (projected) figure runs into over US$30 million going into women’s business,” she said.
“What is the impact of this? Zimbabwe is empowered. Investing in women builds stronger nations – when females earn income, they reinvest 90% of their incomes in their families and communities, leading to faster local development of communities. However, we need to be cognisant of the need to ensure we supply quality goods and services to our customers,” Dr Ndhukula said.
The “Meet-the-Buyer” breakfast meeting, held in Harare, was attended by over 100 female entrepreneurs and women in business. It was also attended by the ambassadors of Canada and Japan.
Sharon Marufu, Econet’s Chief Supply Chain Officer, said the event, among other things, demonstrated how far Econet had come in supporting women’s participation in business since the blue chip company signed the supplier diversity and inclusion partnership agreement with the WOBT last year.
“As a business we believe in doing business sustainably. Empowering women-owned businesses by ensuring increased inclusion within our supply chain is of utmost importance to us as it allows us to play our part in creating economic equity for women and aligns with our drive to be socially responsible in our business activities,” Marufu said at the consummation of the SDI partnership agreement last year.
“The inclusion of women-owned businesses or suppliers provides us with the opportunity to widen and diversify our supply base thereby strengthening our supply chain. Through a more diverse network of suppliers we can reduce our costs and supply risks as well as increase our innovativeness through tapping into more diverse ideas and supplier capabilities,” she said.

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.

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.

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.