Taurai Mangudhla
Zimbabwe’s multi-billion-dollar telecoms industry is closely monitoring foreign currency allocations to importers by the central bank with the aim of increasing tariffs in the event that the new measures fail to address the shortages of hard currency facing the industry at the moment, Business Times has learnt.
Last week, the central bank governor John Mangudya unveiled his Monetary Policy Statement which abandoned the 1:1 parity with the US dollar, and allowed the rate of the local RTGS dollars to be decided by market forces.
A source in government close to the regulation of the telecoms industry said yesterday that while recent industry-government engagements are yet to be formalised, sentiments within the industry point to a review of tariffs.
“I think it is justified,” the source said. “Remember their costing is done in US dollars and with the new MPS, they need to adjust because they are getting most of their supplies using foreign currency.”
Efforts to get official comments from players in the industry were fruitless, but a top executive of Econet Wireless said the industry had been closely watching developments.
“There is no justification for [an increase in tariffs] as long as foreign currency is available, but if it is not, then there may be a justification,” the executive said.
On Tuesday, Econet Wireless announced tariff increases of between 10 and 40 per cent for roaming, international outbound calling, and SMS services.
Telecel Zimbabwe said it was looking at its tariffs too, “in relation to the movement in the exchange rate to ensure they are viable and sustainable for the business. This is being done in consultation with the regulator, Potraz.”
Potraz figures show that the industry recorded combined revenues of about $966m in the first nine months of 2018. Capital expenditure for mobile telephone companies stood at $15.2 million in the first nine months of 2018 as foreign currency shortages worsened.
The fixed telephone revenues were $97.4m while mobile telephone revenues stood at $868.7m. In 2017, sector revenues increased to $1.1bn from $998.1m recorded in 2016.
