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.

Deputy Minister of Finance, Economic Development and Investment Promotion David Mnangagwa
People should soon be able to access bureaux de change for small foreign exchange transactions at the official exchange rate and the Government plans to allow the return of mobile wallet agents as part of ongoing efforts to promote the use of the electronic ZiG and to ensure legal foreign currency trading.
Finance, Economic Development and Investment Promotion Deputy Minister, Mr David Mnangagwa, told Parliament last week that Government was working closely with the private sector to facilitate small transactions, allowing citizens to access foreign currency legally and conveniently.
This follows the suspension of more than 4 000 EcoCash agents in 2020 on allegations of participating in the then rampant trend of charging excessive premiums for customers intending to cash in their mobile money.
He announced the change in policy in the Senate last week while responding to Senators’ queries on measures taken by the Government to address illegal foreign currency trading.
“We are working on a solution as Government, coupled with the private sector, to allow for small transactions, that is the general populace to be able to get the small amounts, $20 or $50, through negotiations with our mobile network operators to be able to access the bureaux de change that are on their EcoCash or Netcash platforms.
“This means if you have an Econet line and if you register for EcoCash, you can convert from ZiG to US dollars, or from US dollars to ZiG at the official exchange rate. That is the first part to allow interchangeability without having to go to the streets,” the Deputy Minister said.
This move is expected to promote financial inclusion, reduce reliance on the black market for the small transactions and increase the use of electronic ZiG.
The plan, the Deputy Minister said, also involved reactivating EcoCash agents across the country, particularly in rural areas, to ensure that everyone had access to legal foreign currency.
“The second part is, we are still in discussion. Right now, the Reserve Bank of Zimbabwe is talking to the mobile network operators, mentioning Econet in particular because they were suspended in 2020 after some issues that now have been ironed out.
“We would want to have agents reactivated so that the most remote areas, our constituents, the citizenry can access both US dollars and ZiG from their wallets.
“Econet went a step further last week and zero-rated the charges for sending money from parts of the diaspora to Zimbabwe. This was a show of good faith and support for Government during this El Nino period as well as to show the commitment in bolstering our efforts in supporting and defending.”

The 2024 Econet Victoria Falls Marathon is expected to draw more than 5 500 participants from around the world, marking a notable surge in athletes and running enthusiasts participating in the event this year.
Speaking ahead of this year’s event, Econet Wireless chief executive, Douglas Mboweni said the company was looking forward to the event, and ready to welcome local and international participants at Africa’s Number One marathon, set to be held on Sunday, July 7, in the resort town of Victoria Falls.
“We are looking forward to the marathon and are thrilled by the ever-growing local and international appeal of the event, an indicator that more and more people are adopting wellness and a healthy lifestyle.
“It’s clear that the Econet Victoria Falls Marathon has become a major highlight on the global marathon calendar globally, and we are excited to welcome runners from all over the world to this great event.”
The 2024 marathon, running under the theme “Road to Victory”, offers a variety of distances to cater for any runners. Participants can choose from the famed, full 42km marathon, the half marathon (21km), a collaborative team relay with two runners doing 10.5km each, or the more popular 7.5km Family Fun run.
Now in its 16th year, the Econet Victoria Falls Marathon has cemented its reputation as a top African running event.
The race’s renowned scenic route takes runners on an unforgettable journey through the breathtaking landscapes and wildlife surrounding the iconic Victoria Falls, allowing participants to enjoy its grandeur up-close.
Mboweni said the Econet Vic Falls Marathon was now more than just a race, but a catalyst for local and international tourism.
“There is no doubt the event has become a catalyst for tourism in our nation and a tool for positive change in our local communities.”
He said as visitors flock to Vic Falls from around the world, tourism flourishes “benefiting local businesses, hotels and lodges, and the entire travel and tourism industry.”

THE 2024 Econet Victoria Falls Marathon is expected to draw more than 5,500 participants from around the world, marking a notable surge in athletes and running enthusiasts participating at the event this year.
Speaking ahead of this year’s event, Econet Wireless Zimbabwe Group chief executive officer, Dr Douglas Mboweni, said the company was looking forward to the event, and ready to welcome local and international participants at Africa’s Number One marathon, set to be held on Sunday, July 7, in the resort town of Victoria Falls.
“We are looking forward to the marathon and are thrilled by the ever-growing local and international appeal of the event, an indicator that more and more people are adopting wellness and a healthy lifestyle,” he said.
“It’s clear that the Econet Victoria Falls Marathon has become a major highlight on the global marathon calendar globally, and we are excited to welcome runners from all over the world to this great event.”
The 2024 Marathon, running under the theme: “Road to Victory”, offers a variety of distances to cater for any runners.
Econet has advised participants to choose from the famed, full 42km marathon, the half marathon (21km), a collaborative team relay with two runners doing 10.5km each, or the more popular 7.5km Family Fun run.
Now in its 16th year, the Econet Victoria Falls Marathon has cemented its reputation as a top African running event.
The race’s renowned scenic route takes runners on an unforgettable journey through the breathtaking landscapes and wild life surrounding the iconic Victoria Falls, allowing participants to enjoy its grandeur up-close.
Dr Mboweni said the Econet Vic Falls Marathon was now more than just a race, but a catalyst for local and international tourism.
“There is no doubt the event has become a catalyst for tourism in our nation, and a tool for positive change in our local communities,” he said.
He said as visitors flock to Vic Falls from around the world, tourism flourishes, “benefiting local businesses, hotels and lodges, and the entire travel and tourism industry”.
Registration for the Marathon has been streamlined for convenience, with participants able to sign up and make payments online.

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.

The Marathon has grown significantly since its inception in 2006, and now attracts participants from around the world every year.
Victoria Falls Mayor, Councillor Prince Thuso Moyo, says the resort town is ready and fully prepared to host the 16th edition of the Econet Victoria Falls Marathon taking place this Sunday, July 07, 2024.
The eagerly anticipated event — now fully established as one of Africa’s premier running events — promises an unforgettable experience, with its scenic routes that showcase the breathtaking landscapes and diverse wildlife surrounding the iconic Victoria Falls.
Mayor Councillor Moyo said the marathon will bring about a substantial economic impact to the region, noting that it serves as a major income earner for the local hotel and tourism industry.
“The Econet Victoria Fall Marathon is a major athletic event which I am told will this year attract over 5 500 participants from around the world each year. As a World Heritage Site, the Falls are the primary source of revenue for the town, and the thousands of athletes coming to the town will engage in other tourist activities thereby boosting the industry,” the Mayor said.
The Marathon has grown significantly since its inception in 2006, and now attracts participants from around the world every year.
In addition to its economic benefits, the marathon plays a pivotal role in promoting Victoria Falls as a top tourist destination. The influx of international visitors not only boosts local businesses but also enhances the resort town’ global profile.
The marathon’s route, which includes awe-inspiring views of the Victoria Falls Bridge and great Zambezi River, offers runners an experience to be cherished, that blends the thrill of the race with the beauty of the natural surroundings.
Meanwhile, former Confederation of Zimbabwe Industries president and CEO of United Refineries Mr Busisa Moyo noted that the Econet Victoria Falls Marathon presents an opportunity for businesspeople to meet and discuss business opportunities and ideas.
“The marathon presents opportunities for businesspeople to mix and mingle and produce effective results in terms of investment.
“The few hours that these practitioners meet are very impactful, so the marathon is great for the business community and the city of Victoria Falls, which is largely known for its hospitality industry,” he said.
Mr Moyo, who is also the Chairman of the Zimbabwe International Trade Fair, has in the past participated in several editions of the Econet Victoria Falls Marathon.
The 2024 Marathon, running under the theme ‘Road to Victory’ offers races catering for different categories of runners.
Participants can choose the full marathon (42.2km), the half marathon (21.1km), a collaborative team relay with two runners doing 10.5km each, or the popular 7.5km Family Fun Run.

LONG-Distance runner Blessing Waison is hoping to defend his Econet Victoria Falls Marathon title when he takes part in the 2024 edition of the annual event on Saturday.
Waison improved his time by three minutes from his 2022 performance to win the 2023 race in 2 hours 15 minutes 11 seconds.
Waison beat second-placed Elijah Mabhunu by more than two minutes (2:17:21) while Lyno Muchena was third in 2 hours 17 minutes 30 seconds.
Prosper Mutwira finished fourth in 2 hours 17 minutes 41 seconds while another veteran Mike Fokoroni dropped from fifth last year to eighth, in 2 hours 22 minutes 32 seconds.
Ethel Pangiso was the women’s winner in 2 hours 41 minutes 51 seconds. Waison says his target is to win the race again on Saturday.
“My training has not been at 100 percent because I have been nursing an injury so I can’t promise fireworks but the aim going into Saturday is to defend the title. It’s always a pleasure to participate in this elite competition and I will give it my all to once again be on the podium,” he said.
The 2024 Marathon, running under the theme: “Road to Victory”, offers a variety of distances to cater for any runners.
Econet has advised participants to choose from the famed, full 42km marathon, the half-marathon (21km), a collaborative team relay with two runners doing 10.5km each, or the more popular 7,5km Family Fun run.
Now in its 16th year, the Econet Victoria Falls Marathon has cemented its reputation as a top African running event.
The race’s renowned scenic route takes runners on an unforgettable journey through the breathtaking landscapes and wildlife surrounding the iconic Victoria Falls, allowing participants to enjoy its grandeur up-close.

Telecommunications and technology firm Econet Wireless tops the Active Subscriber Market Share as it gained 1.07 percent from 69.73 percent registered in the fourth quarter of 2023 to 70.80 % in the quarter under review, according the Postal and Telecommunications Regulatory in Zimbabwe (POTRAZ) first quarter 2024 report.
The sector recorded a 1.56% contraction in active mobile subscriptions from 14,973,816
recorded in the fourth quarter of 2023 to 14,746,943 in the quarter under review. This resulted
in a 1.56% decline in mobile penetration rate from 97.7% recorded in the fourth quarter of 2023 to 96.14% recorded in the first quarter of 2024. The following table shows active mobile
subscriptions recorded in the fourth quarter of 2023 compared to the first quarter of 2024
Telecel slightly gained in market share as it gained 0.06%.
It is worth noting that gains of Econet(1.07%) and Telecel (0.06%) arose from a reduction in NetOne’s market share whichcontracted by 1.14% from 28.39% in the previous quarter to 27.25% in the quarter under review.
However, Econet recorded a slight decline in active mobile subscriptions of 0.04%. Only Telecel registered a 4.34% growth in active mobile subscriptions. Figure 1 below shows a quarterly
comparison of market shares of active mobile subscriptions by the three Mobile Network
Operators (MNOs).

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.

Econet Wireless Zimbabwe last week upgraded its base stations at Kutama, 80 km southwest of Harare, and at Murombedzi, about 110km west of the capital, to high-speed LTE/4G as part of a marathon rollout programme recently announced by the company to upgrade and install at least 130 new base stations in 90 days. The listed mobile telecommunications company, which enjoys nearly 70% market share of high-speed LTE infrastructure in the country, is on an ambitious drive to upgrade its existing sites to 4G as well as install faster technology base stations at new sites across the country to widen its national coverage. Econet Chief Operating Officer Kezito Makuni said the network infrastructure upgrade at Kutama and Murombedzi will help the company increase coverage in the area and improve the quality of access to services such as e-learning for underserved communities. “We have witnessed an increased demand for data and connectivity across the country, which was necessitated by the COVID-19 pandemic, leading to a shift in education and learning methods, social engagements as well as how organizations conduct business and commerce,” he said in a speech read on his behalf by Clemence Kawadza, the company’s regional general manager for Mashonaland West.

“As a leading digital communications service provider, we are excited to be the proud enablers of this transformational change designed to improve lives and livelihoods, and to facilitate business and commerce,” he added. Zvimba Rural District Council chief executive, Enias Chidakwa, who was guest of honour at the event, said the investment by Econet would go a long way in reducing the digital divide between urban and rural areas. “I am happy to say that the investment and solutions that Econet has provided will not only uplift our area economically, through the facilitation of business transactions with individuals and other businesses, but will also put thousands of people living in Zvimba on the world map, as we are guaranteed fast efficient and reliable network services,” he said. He added that by upgrading its base stations in the area, Econet will help Zimbabweans enjoy the full benefits of digital technologies. “We are hopeful that this investment will unlock our rural communities to accelerated social and economic development,” he said.