Zim telecoms face headwinds

PHILLIMON MHLANGA AND MOSES MATENGA

Players in Zimbabwe’s telecommunications industry are gathering in Harare today, confronting a host of challenges amidst declining profitability and soaring expenses.

The sector is  also grappling with shrinking margins, rising costs, cash conservation, and power shortages, all of which will be under scrutiny during today’s meeting. ICT Postal and Courier Services Minister Dr. Tatenda Mavetera is set to lead the event, with key industry stakeholders in attendance.

At the heart of discussions is the issue of data affordability, as consumers argue that data prices are prohibitively expensive. Despite claims by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) that mobile data in Zimbabwe is among the cheapest in the region, President Emmerson Mnangagwa has intervened, emphasizing the need to address the matter.

“The new companies entering this space are expected to increase Zimbabwe’s internet connectivity. There must be affordable, usable products and services to our communities,” Mnangagwa stated, stressing the importance of accessible data pricing.

He also cautioned against misuse of ICT platforms, warning that offenders will face consequences for spreading falsehoods or promoting self-hate.

Google Senior Vice President, James Manyika, echoed concerns about data affordability, particularly in Africa, highlighting the high costs and expensive devices as significant barriers to access.

However, POTRAZ Director General Dr. Gift Machengete defended Zimbabwe’s data pricing, stating that while costs may seem high due to low disposable income, data remains affordable compared to regional standards.

The industry also faces challenges from regulatory measures and additional taxes imposed by the government. Inflation spiked to 47.6% in February, exacerbating the sector’s woes, while foreign exchange shortages have hampered network development initiatives.

Telecom companies are grappling with exchange rate losses, making it difficult to invest in infrastructure development. They have been engaging with POTRAZ for tariff reviews to track inflation and exchange rate trends, but tariff adjustments have lagged behind economic realities.

Stakeholders stress the urgent need for a regulatory framework that supports infrastructure development and ensures the sector’s viability amidst economic challenges.