Zimbabwe may bump up prices

07 May 2024

Zimbabwean telecoms companies have not ruled out the possibility of increasing the prices of their services again.

Under the Association of Zimbabwean Telecom Operators (TOAZ), TelOne, Econet, NetOne and Telecel have challenged the regulator and consumers on the difficulties they have in maintaining their prices for a long time to the detriment of their profitability.

“Like all other sectors in Zimbabwe, the telecoms industry also faces challenges such as shortage of foreign exchange, increasing operating costs, frequent power cuts and significant debt levels. It is essential to quickly address these challenges to maintain the viability and sustainability of the local telecoms sector, allowing it to adapt to technological innovations and have a positive impact on economic growth,” said TOAZ in a release.

Zimbabwe’s telecoms operators have regularly revised their prices upwards since 2019, but these adjustments have proven ineffective due to the economic crisis reigning in the country.

A further increase in services should enable the operators to increase their revenues and make their activities profitable. This should also allow them to invest in the extension and modernization of their networks to guarantee quality services to customers.

“Investments in ICT infrastructure are essential to expand geographic coverage and transition to new, faster and more efficient technologies, such as 5G. These investments are largely made in foreign currencies. For example, 5G technology makes it possible to achieve speeds higher than the general needs of users, whether individuals or businesses,” said TOAZ.