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.

LEADING telecommunications group Econet Wireless Zimbabwe contributed ZW$12.2 billion, a third of its revenues, into the country’s economy through taxes in 2020, figures in its annual report revealed. According to the company’s annual report released recently, Econet’s contribution to the national fiscus went up by nearly 50%, from ZW$8.2 billion the previous year to ZW$12.2 billion this year. The telecoms giant’s tax contributions included income tax, value-added tax, import duties, license fees, withholding taxes, special excise duties and pay as you earn for its employees. The contribution was after the group had registered ZW$35 billion in top-line revenues, along with profit after tax of ZW$836.5 million in the full year to February 28, 2021. Econet’s commitment when it comes to its statutory obligations over the years has positioned it as one of the top taxpayers in the country as the company fulfils tax obligations. Dr James Myers, Econet Wireless Zimbabwe chairman, said the business works to ensure its tax policy remains robust and in alignment with the requirements of tax legislation.

“We believe that we will play a part in the resurgence of Zimbabwe’s economy through providing world-class services to support the enhanced growth and digitalisation of the economy,” he said. Taxation provides the revenue needed to mobilize government resources, build the nations’ infrastructure, support the public sector and help reduce poverty. Dr Myers said Econet remains committed to its founding vision of providing services to all people, without exclusion. “As we transform our business to a digital services provider from being primarily a communications service provider, we aim to develop resilient business models that are relevant to our customers and our operating environment. Our services are gradually changing as we pivot the business to the new realities that we see emerging, as consumers demand a different digital experience as the world evolves and technology changes to cater for the new needs and expectations of our society,” he said.

Zimbabwe’s largest telecoms company has over the years contributed massively to the economy through direct and indirect employment-creation, playing its part in economic development and empowerment, and in poverty reduction. In addition to it tax contribution, Econet created 1 159 direct jobs in 2020, paid ZW$41.7 million in commissions to brand ambassadors and invested over ZW$1 billion in network infrastructure.

Econet Wireless, Zimbabwe’s leading telecommunications and technology company, continued its network infrastructure investment drive in the second quarter of 2021, adding 28 new base stations, according to the latest sector performance report. The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) said mobile networks added a total 52 base stations in the second quarter, with NetOne putting up 17 base stations, while Telecel added seven, bringing the cumulative total number of base stations in the country to 9 048. The latest drive-by Econet, which currently boasts of 5 047 base stations, comes at a time when the telecoms sector is dogged by rising operating costs, acute foreign currency shortages and depressed aggregate demand.

According to the Abridged Postal and Telecommunications Sector Performance Report Second Quarter 2021 released last Thursday, the industry’s operating cost grew by 15.8% to ZW$8.9 billion while revenues grew by 22.2% to ZW$16.9 billion in the same period. In the period under review, Econet’s operating costs increased by 16.2%, while NetOne and Telecel’s operating costs surged by 10.2% and 42.1% respectively. “Staff costs, depreciation, and bandwidth costs continued to constitute the bulk of mobile network operating costs,” read part of the report. Analysts said it was crucial for the government to introduce incentives, such as tax breaks, to allow the industry to cut down on costs that are threatening to erode margins and impact the sector’s viability.

The Potraz report also highlighted the need to capacitate the sector, which continues to be critical in keeping the economy running in the midst of the Covid-19 pandemic by providing businesses with critical connectivity and operational resilience. “This has, however, resulted in an unparalleled surge in the use of the internet in providing e-services, among which e-learning, e-shopping, e-worshipping and e-health would quickly come to mind. Indeed, the pandemic has shone a light on the urgent need for accelerating digital transformation. The necessity for greater investment in digital technologies, skills, resilience and innovation can never be overemphasised,” Potraz said.

“Never before in our lifetime have circumstances changed so fast, and has there been a greater need to adapt. This calls for concerted efforts in the consolidation of strategies that deliberately focus on ICT development, executing smart policies and effective processes that embolden investments in ICTs and digital skills, and embracing emerging technologies that are crucial to the digital economy.” In the second quarter, mobile internet data traffic increased by 7.2% to 23 436 terabytes from 21 865 terabytes in the previous quarter. According to the report, Econet’s data market share jumped 0.6% while NetOne and Telecel lost market share by 0.4% and 0.2% respectively. “The total number of active mobile telephone subscriptions increased by 3.9% to reach 13 481 527 in the second quarter of 2021 from 12 970 615 recorded in the first quarter of 2021. As a result, the mobile penetration rate increased by 3.5% to reach 91.3% from 87.8% recorded in the first quarter of 2021,” said Potraz.

Econet Wireless Zimbabwe (Econet) and Ericsson (NASDAQ:ERIC) have announced a partnership to implement Ericsson’s Learning Services Digital Platform for Econet’s employees. Econet will have access to Ericsson’s premium e-learning content service, All Access Plus. The partnership with Ericsson enables Econet to utilize the Learning Services Digital Platform ensuring unlimited and uninterrupted access to Ericsson’s e-learning content available in the global Ericsson training library. As a knowledge library, All Access Plus is updated regularly and includes more than 200 interactive trainings and videos, podcasts and white papers. This partnership gives Econet a premium subscription service that offers employees an instructor-led learning experience via e-lectures and recorded multi-hour learnings that guide the employees on Ericsson’s best-in-class technology with the aid of practical exercises and demonstrations.

Kezito Makuni, Chief Operating Officer at Econet said: “The long-standing partnership between Ericsson and Econet is witnessing growth into new areas. With new hybrid and remote working conditions, finding solutions to continue our growth in a highly mobile environment is vital. Ericsson’s innovative Learning Services Digital Platform will benefit and add value to Econet’s employees. Econet employees will gain knowledge and develop their skills by accessing updated, relevant content anywhere at any time.” Econet’s employees can achieve their competence development goals using the platform at their own pace, anytime and anywhere, with the ability to review the materials as desired, due to the round-the-clock availability of this service. Additionally, this platform will address Econet’s transforming needs during this time of fast technological growth and change.

Econet Wireless Zimbabwe has taken a major step in demonstrating its commitment to sustainable development by becoming a participant in the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative.  The UNGC brings together businesses from across the globe to implement principles of sustainable development and corporate responsibility. It currently has more than 13 000 companies in over 160 countries.  The initiative encourages organisations to align their strategies and operations with universally accepted principles of environment, social, governance and human rights as well as the Sustainable Development Goals, among others. Econet Chief Executive Officer Dr Douglas Mboweni, said becoming a member of the UNCG was part of the mobile telecommunications organisation’s commitment to sustainability. “This is an important step in Econet’s sustainability journey for which we have the full support and backing of our entire board of directors. “As a UNGC participant, we will be able to leverage the initiative’s vast global network of participants to embed sustainability into our core strategies and operations. 

“We very much look forward to working with member organisations to advance sustainability through this initiative, drawing inspiration from others, and hoping that some organisations will learn from our experience,” Dr Mboweni Said. Econet’s sustainability journey began more than 20 years ago when the company started supporting Higherlife Foundation to provide access to education for vulnerable and underprivileged children, as well as to fund educational opportunities for gifted and talented students through scholarships.  To date, the programme has impacted over 250 000 students.  In the ensuing years the company, through its partner foundation, has gone on to support various public healthcare initiatives, disease prevention, leadership development and disaster management.  Under the new commitment, Econet will strengthen its existing Environmental, Social and Governance (ESG) activities, while aligning them with the company’s vision and mission and win UN’s SDGs to ensure that the group scales its social and environmental impact in the market it serves.  Dr Mboweni said Econet, which is listed on the Zimbabwe Stock Exchange, was committed to ensuring that in delivering its products and services it intentionally promotes sustainability. 

“We are committed to promoting sustainability across our value chain. At the national level, we are also committed to supporting our country’s pledge to achieve energy emissions per capita that are 33 percent below the projected ‘business as usual’ level by the year 2030,” Dr Mboweni said.  To achieve some of its sustainability goals, Econet recently partnered with its renewable energy sister company, Distributed Power Africa, to reduce the company’s diesel consumption by 80 percent over the next few years through the use of solar and lithium batteries. “We will continue to leverage our partnerships, both within our group and with like-minded organisations, and to use technology to drive corporate social investment in multiple sectors, including in the financial services sector, in healthcare delivery, agriculture and education – to name a few,” said Dr Mboweni. Econet, which developed EcoCash – the highly popular and award-winning mobile money platform that it spun off in December 2018 under Cassava Smartech Zimbabwe has been one of the biggest contributors to financial inclusion in Zimbabwe. Cassava Smartech is listed on the Zimbabwe Stock Exchange and is itself a participant in UNGC. The Ecocash Mobile money platform has integrated millions of previously excluded members of the population into formal financial services, empowering millions of individuals and hundreds of thousands of small businesses process.

Econet Wireless, Zimbabwe’s largest mobile network operator, unveiled an affordable 4G enabled smartphone that is set to increase mobile internet adoption across the country. The new 4G MIFI Kambudzi, which runs on the KaiOS operating system, can be used across all networks and is designed to allow subscribers to connect at faster speeds. The new and affordable device was created to suit the communication needs of first-time users and of customers in rural and marginalised areas. “No one should be left behind in the Fourth Industrial Revolution (driven by digital connectivity). We believe the new 4G MIFI Kambudzi will increase digital literacy across our entire market,” said Econet in a statement, adding that the company was targeting an increase in smartphone penetration by deploying low-cost devices.

Zimbabwe’s smartphone penetration is currently at 52%, compared to about 90% for South Africa. This has remained a barrier for the adoption of digital services which Econet hopes to scale through the low-cost device rollout. “The introduction of the 4G MIFI Kambudzi will help increase the uptake of digital products and services, and help promote a digital lifestyle among our customers,” Econet said. The new device, which can connect up to four devices through tethering, was designed for people who are unable to afford smartphones but have the need to go online. It has a user-friendly interface optimized for first-time internet users. It comes preloaded with some popular apps, such as Facebook, YouTube and WhatsApp.

Econet said the new phone will go a long way in decongesting the lower bands of the network (2G and 3G) by increasing the utilisation of the LTE (4G) network in the country, which is a lot faster than the former. Econet has made significant investments in it LTE and 4G infrastructure, making it the most reliable digital and Internet service provider in the country. “The 4G MiFi Kambudzi has a long battery life that solves connectivity problems emanating from power shortages in under-served communities and in remote areas. Customers can enjoy Internet access for long hours without having to recharge,” Econet said.

ECONET Wireless Zimbabwe Limited fended off stiff competition from a strong field of blue-chip companies to win the coveted Top Companies Survey Award. According to the judges of the annual survey of Zimbabwe Stock Exchange-listed companies, conducted by The Financial Gazette and Old Mutual, the top accolade is awarded to a company that not only performs exceptionally well on the stock exchange but also excels on other issues to do with social responsibility, environmental, leadership, corporate governance as well as disclosure and investor relation factors.

Financial Gazette Deputy Editor, Tabitha Mutenga (TM) caught up with Econet Wireless Zimbabwe Chief Executive, Douglas Mboweni (DM), after his company received the coveted award, to find out what he attributes the stellar business performance to and what the market and investors can expect going into the future.

Read More on the Financial Gazette.

EcoCash agents country-wide will soon begin issuing out United States dollars sent to local recipients from diaspora through Sasai Remittances. The development comes at a time when EcoCash agents which used to cash-out the greenbacks before the bond notes era are struggling with cashing out of the local currency owing to the cash crisis Zimbabwe is in. Local transactions will remain cashed-out in the local currency. Launched in August last year, Sasai among other things allows users to remit money to many parts of the world at lower charges.  Cassava International Remittances general manager, Shepherd Hondoyemoto, who said Sasai’s international remittances had brought great relief to Zimbabweans living in the Diaspora wishing to remit funds home, added Ecocash agents would be soon disbursing US dollars. “So you will see in the next coming couple of days to weeks, those key constituents, those, those key districts will have agents representation and they will still be offering US dollar cash, not bond,” said Hondoyemoto. “Every remittance, you will get it in US dollar cash.”

He said that would ensure that people living in rural areas and other places far away from towns and cities do not have to travel long distances to access their cash from abroad. “We said the most important thing is to go to that model where we are covering every part of the country,” he said. “Our services should be at your arm’s length.” He said there has been an increase in the number of Zimbabwean sending money home via Sasai Remit. Customers, Hondoyemoto said, will also have the option to change their money at EcoCash Bureau de changes countrywide. “The coming on of Sasai with its #RemittanceFeesMustFall offer has been very well received by Zimbabweans across the globe, and this is evidenced by the increase in remittance volumes we have seen coming in via Sasai,” Hondoyemoto said. At its introduction, the platform offered free charge on remittances for 30 days after which it moved to a mere 2,5 percent.