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.”

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

The 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.

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.