Econet reports 44% surge in voice calls

Econet Wireless Zimbabwe has reported a remarkable 44 percent year-on-year increase in voice call volumes for the quarter ended May 31, 2025, defying industry expectations that traditional voice services are in decline. This surge accompanies a more than doubling of data traffic, highlighting a dynamic telecommunications market where both legacy and modern services thrive.

In its quarterly trading update released this week, Econet attributed the sharp rise in voice calls to "sustained demand for connectivity" that runs alongside the rapid expansion of its digital ecosystem. While reaffirming data's strategic importance to the sector's future, the company's performance underscores the continuing relevance of voice telephony in Zimbabwe's evolving communications landscape.

This dual growth narrative illustrates a market where fundamental connectivity services continue to generate substantial demand even as advanced digital offerings gain ground.

To address persistent affordability challenges hindering smartphone access, Econet announced a significant overhaul of its "Kancane Kancane" smartphone financing programme. The revamped initiative removes the deposit requirement and extends repayment terms up to 24 months, a notable increase from the previous maximum of three months.

The company's move follows 2024 data from POTRAZ revealing smartphone penetration in Zimbabwe remains at just 55 percent, underscoring the need for more inclusive financing options.

"We're giving customers the chance to step into the digital world without high upfront costs," Econet stated, positioning the expanded programme as a critical driver of national digital inclusion.

The timing coincides with a growing shift of essential services—including mobile banking, e-learning, online shopping, telehealth, and remote work—to digital platforms.

Supporting service delivery, Econet continued to enhance its network infrastructure during the quarter by deploying 10 lightweight, cost-effective base stations targeting underserved rural areas, commissioning 20 new sites, and expanding its 5G footprint by 100 locations nationwide.

Group revenue, adjusted for inflation, held steady year-on-year, driven by volume increases across both its Mobile Network Operations (MNO) and Financial Technology (FinTech) divisions.

Within FinTech, EcoCash transaction volumes grew 27 percent, buoyed by a 110 percent surge in wallet funding. The group's insurance subsidiaries also reported significant growth: EcoSure (life insurance) saw a 43 percent increase in policies, Moovah (short-term insurance) policyholders grew by 69 percent, and Maisha (medical aid) membership rose by 92 percent compared to the same period last year.

Reflecting strong confidence, Econet's Board declared and paid an interim dividend of 0.63 US cents per share.

Looking ahead, the company expressed optimism about the growth prospects for both its mobile and financial technology businesses. The MNO segment expects continued momentum from rising data consumption, subscriber base expansion, and refined pricing strategies. The FinTech arm anticipates accelerated growth fueled by deeper mobile money penetration and the launch of new value-added financial products.

Innovation remains central to Econet's strategy to boost operational efficiency, enhance customer value, and sustain healthy margins.

Analyst Walter Mandeya of Trigrams Investments commented, "Econet's first-quarter results illustrate a multifaceted approach capitalising on unexpected strength in traditional voice services while aggressively pursuing data-led growth and proactively dismantling device affordability barriers to foster broader digital inclusion."