Zimbabwe mobile operators record strong growth

Zimbabwe's mobile telecommunications sector recorded significant growth in the second quarter of 2025, with revenues climbing, costs easing, and capital investment reaching record levels, according to the latest industry performance report.

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) revealed in its Second Quarter Postal and Telecommunications Abridged Sector Performance Report that total revenue for mobile network operators (MNOs) rose 9.24 percent, from ZWG 6.15 billion in the first quarter to ZWG 6.71 billion.

Operating costs fell 5.47 percent, from ZWG 3.68 billion to ZWG 3.48 billion, reflecting improved efficiency across the sector. Meanwhile, capital expenditure surged 261 percent to ZWG 1.53 billion, up from ZWG 423.81 million, as operators accelerated network expansion.

Data services remained the largest revenue contributor, accounting for 47.97 percent of total income. Growth was driven by the increasing use of bandwidth-heavy platforms such as Netflix, YouTube, and TikTok, which have heightened demand for faster and more reliable internet connectivity.

Infrastructure development also advanced rapidly, with 68 new 5G base stations deployed, bringing the total to 252, alongside 246 LTE stations and 130 3G stations. POTRAZ noted that the increased deployment of LTE and 5G base stations would enhance connectivity, network speeds, and overall quality of service.

In the Voice over Internet Protocol (VoIP) market, Liquid Intelligent Technologies maintained its lead with 53.10 percent of subscriptions, followed by Africom at 23.47 percent. Dandemutande, TelOne, and Telecontract held 17.91 percent, 5.13 percent, and 0.39 percent, respectively.

Traditional voice services continued to decline, with total voice traffic on the Public Switched Telephone Network (PSTN) falling 9.67 percent, from 54.64 million minutes in Q1 to 49.36 million minutes in Q2. The largest drops were in traffic between fixed and mobile networks, as well as calls to Internet Access Providers. International incoming traffic fell 6.84 percent, while outgoing international calls rose 4.42 percent.

POTRAZ attributed the decline in traditional voice services to the growing substitution effect of over-the-top (OTT) communication applications and the shift from fixed-line to mobile services.

Analysts say the sector's rising capital expenditure and rapid 5G and LTE network rollout position operators to meet surging consumer demand, cementing data-driven services as the backbone of telecom revenues while traditional voice services continue to wane.