Potraz calls for sustained telecoms investment to drive digital economy

STAFF WRITER

The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) says sustained investment in modern telecommunications infrastructure will be central to supporting Zimbabwe’s digital economy and broader national development agenda.

In its 2025 Third Quarter Sector Performance Report, the regulator highlighted growing demand for mobile data and broadband services, driven by increased digital adoption across households, businesses and public services.

“In trying to keep up with the growing demand for connectivity, operators are expected to continue expanding network infrastructure, with such investments aimed at improving network coverage, quality of service and network efficiency,” Potraz said.

The authority added that the continued deployment of next-generation technologies such as Long-Term Evolution (LTE) and 5G base stations will play a critical role in enhancing user experience, promoting digital inclusion and unlocking innovation and economic participation.

Potraz’s call comes at a time when Zimbabwe’s major mobile network operators, including Econet Wireless Zimbabwe and NetOne, are implementing network expansion and modernisation programmes to strengthen capacity and improve service delivery, particularly in underserved and rural communities.

However, industry experts caution that sustaining infrastructure investment will remain challenging unless targeted policy interventions are introduced to ease operating pressures on operators. These include tax reductions, cost-reflective tariffs, reduced import duties on network equipment and improved access to affordable foreign currency.

The telecommunications sector is highly capital intensive, with operators typically required to reinvest at least 20 percent of their revenues into network upgrades, spectrum acquisition, software platforms and hardware infrastructure to maintain service quality and reliability.

In Zimbabwe, operators also face persistent challenges such as high energy costs, currency volatility, rising infrastructure import costs, vandalism, power outages and the need to support legacy networks alongside newer technologies. These factors have placed pressure on margins at a time when consumer affordability remains constrained.

Despite these headwinds, operators have continued to invest heavily. Econet chairman Dr James Myers recently said rising customer expectations for faster speeds, wider coverage and more reliable services have driven the company’s accelerated network modernisation strategy.

“Growing expectations from customers for better services, enhanced experiences and wider coverage have driven significant effort and investments into our network modernisation journey as we expanded and optimised existing capabilities,” Dr Myers said.

During the half year, Econet deployed 26 lightweight, cost-effective base stations targeting underserved and rural communities, helping to extend connectivity to areas historically affected by poor network coverage.

“In addition, we deployed 27 new sites with 2G, 3G and 4G capabilities. Our 5G expansion programme was accelerated with an additional 100 new sites nationwide,” he said.

Dr Myers said the expanded infrastructure forms the backbone for future innovation, enabling the rollout of new digital products and services and supporting various Internet of Things (IoT) use cases across sectors such as agriculture, mining, health and smart cities.

Beyond physical infrastructure, Econet has also made progress in modernising its digital platforms. Dr Myers said the company’s migration to a new billing and subscription platform advanced significantly during the period.

“This advanced system will automate critical business processes and enable the delivery of more personalised and customer-centric digital experiences,” he said.

The company also continued embedding artificial intelligence-based solutions into its core business processes to enhance network capacity planning, improve operational efficiency and deepen its understanding of customer behaviour and needs.