In its recent report on the Zimbabwean telecom market, BuddeComm indicated that the country’s weak economy has impacted sectoral performance in 2021. That sluggish trend is not yet over.
In Zimbabwe, the current economic crisis is weighing on the telecom market. In a recent statement, state-owned operator TelOne revealed it was struggling to keep its head above water in the economic context. Like its competitors, the operator has to contend with rampant inflation and a weak local currency.
According to local media, annual inflation was 191% in June and the Zimbabwean dollar has fallen by 70% against the US dollar since January 2022. Meanwhile, regulatory constraints prevent operators from changing their tariffs. In that context, it was difficult for TelOne to pay its suppliers and invest in network expansion or improvement.
According to telecom regulator POTRAZ, mobile network service providers’ operating costs rose by 10.9 percent quarter-to-quarter in Q4-2021. They went from ZWL12.5 billion (USD39 million) in the third quarter to ZWL13.9 billion in the fourth quarter. Revenues increased by 34 percent, to ZWL 26.2 billion. In the fixed-line network, operating costs increased by 40%, to ZWL 2.9 billion during the period.
The last tariff adjustment carried out by TelOne dates back to September 2021. This year, no adjustment has been approved yet. For the POTRAZ, TelOne should prioritize operating cost control to maintain profitability.
Isaac K. Kassouwi
Absa Kenya hires M-PESA’s Sitoyo Lopokoiyit, signalling a shift from branch banking to a telecom-s...
Ziidi Trader enables NSE share trading via M-Pesa M-Pesa revenue rose 15.2% to 161.1 billio...
MTN Group has no official presence in the Democratic Republic of Congo, where the mobile market is d...
Ghana has 50,000 tonnes unsold cocoa at ports Cocoa prices fell from $13,000 to around ...
This week in Africa, Africa CDC is stepping up its drive for health sovereignty, building new partne...
NSIA Finance becomes NSIA Capital to reflect broader investment ambitions Group aims to mobilize more capital and expand advisory and funding...
Production could rise to 25–30 million tons this year, from about 10 million in 2025 Growth driven by ArcelorMittal’s $1.8bn expansion and new...
Agreement with Gécamines could extend KCC mine life into the 2040s Copper output target raised toward about 300,000 tons a year Move comes as Glencore...
Five local banks to mobilize CFA41.2bn ($74.4m) for Grand-Zambi mine Funding to be refinanced through BEAC’s “Window B” for productive...
“Dao” ranks among the three films in official competition at the 76th Berlinale and marks Alain Gomis’ second bid for the Golden Bear. The film...
Fort Jesus is a fortress located in Mombasa, on Kenya’s coastline, at the entrance to the natural harbor that long made the city a hub of trade in the...