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.

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.

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.

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.

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.

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.

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.