News / National
Zimbabwe telecom companies hike tariffs
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Zimbabwe's major telecommunications companies have announced long-anticipated increases in the prices of voice, data, and SMS bundles following regulatory approval by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) on Monday.
The new tariffs, which take effect today, apply only to promotional bundle prices, with headline tariffs for all services remaining unchanged.
The decision comes as telecom operators grapple with rising operational expenses, foreign currency shortages, and a volatile economic environment worsened by the weakening Zimbabwe Gold (ZiG) currency, which has lost 43% of its value since its introduction in April 2024.
Econet Wireless, the country's largest mobile network operator, informed customers of the price adjustments in a notice issued Monday evening.
"Please be advised that we are adjusting bundle prices (Voice, Data and SMS) effective Wednesday, 21 May 2025," the notice read.
While prices for bundles paid in US dollars will see minimal changes, tariffs for ZiG-denominated bundles have been increased by an average of 35%, according to communications between Potraz and one operator.
The increases come after a delay in implementation, initially approved by Potraz late last year. Operators had held off during the festive season to cushion consumers, but say they can no longer absorb mounting costs, especially following the government's repeal of Statutory Instrument 81A, which had mandated use of the official exchange rate.
Potraz's latest Annual Sector Performance Report, released earlier this month, underscores the financial strain facing the telecom sector. Operating expenses for mobile network operators (MNOs) surged by 42.83% in 2024, far outpacing a modest 14.45% growth in revenue.
Total sector revenue grew from US$626.2 million in 2023 to US$716.6 million in 2024, but operating costs jumped from US$256 million to US$365.6 million, putting pressure on profit margins.
Despite the economic headwinds, the country's three major MNOs — Econet, NetOne, and Telecel — increased infrastructure investment significantly in 2024, with a combined US$83.3 million invested in network expansion and technology upgrades, up from US$26.9 million the previous year.
Potraz has warned that unless the cost structure improves, the long-term sustainability and profitability of the telecommunications sector could be at risk.
As the new tariffs take effect, consumers are expected to feel the pinch, even as operators defend the move as a necessary adjustment to remain viable and continue service delivery in Zimbabwe's challenging economic landscape.
The new tariffs, which take effect today, apply only to promotional bundle prices, with headline tariffs for all services remaining unchanged.
The decision comes as telecom operators grapple with rising operational expenses, foreign currency shortages, and a volatile economic environment worsened by the weakening Zimbabwe Gold (ZiG) currency, which has lost 43% of its value since its introduction in April 2024.
Econet Wireless, the country's largest mobile network operator, informed customers of the price adjustments in a notice issued Monday evening.
"Please be advised that we are adjusting bundle prices (Voice, Data and SMS) effective Wednesday, 21 May 2025," the notice read.
While prices for bundles paid in US dollars will see minimal changes, tariffs for ZiG-denominated bundles have been increased by an average of 35%, according to communications between Potraz and one operator.
The increases come after a delay in implementation, initially approved by Potraz late last year. Operators had held off during the festive season to cushion consumers, but say they can no longer absorb mounting costs, especially following the government's repeal of Statutory Instrument 81A, which had mandated use of the official exchange rate.
Potraz's latest Annual Sector Performance Report, released earlier this month, underscores the financial strain facing the telecom sector. Operating expenses for mobile network operators (MNOs) surged by 42.83% in 2024, far outpacing a modest 14.45% growth in revenue.
Total sector revenue grew from US$626.2 million in 2023 to US$716.6 million in 2024, but operating costs jumped from US$256 million to US$365.6 million, putting pressure on profit margins.
Despite the economic headwinds, the country's three major MNOs — Econet, NetOne, and Telecel — increased infrastructure investment significantly in 2024, with a combined US$83.3 million invested in network expansion and technology upgrades, up from US$26.9 million the previous year.
Potraz has warned that unless the cost structure improves, the long-term sustainability and profitability of the telecommunications sector could be at risk.
As the new tariffs take effect, consumers are expected to feel the pinch, even as operators defend the move as a necessary adjustment to remain viable and continue service delivery in Zimbabwe's challenging economic landscape.
Source - newsday
