Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Zimbabwean telcos hike prices as high inflation bites

Article Image
Zimbabwe's mobile prices are going up by as much as 61% as soaring inflation risks putting local operators out of business.

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has reportedly approved tariff increases to help operators survive rising input costs due to the Southern African country's weakening local currency and high inflation.

The last time the regulator ran a tariff review was in September 2021 and since then Zimbabwe's inflation has risen from around 50% to more than 190% as of June 2022.

Local publication, The Chronicle, quoted POTRAZ director general, Gift Machengete, saying that the tariff review was necessary as failure to increase prices would adversely affect operator viability, result in poor quality of services, lead to job losses or even risk operator closures.

Zimbabwe's sluggish economy is weighing on the telecom market and last month state-owned operator TelOne revealed it was struggling to keep its head above water, ITWeb Africa reported.

The Herald reported that Econet Wireless, Zimbabwe's largest operator, this week already increased the price of its voice calls, SMS and data prices as has TelOne.

The Zimbabwean dollar has dropped over 70% against the US dollar so far in 2022 while electricity prices in the country have gone up over 350%, a major impact for telecoms operators which use electricity to keep their networks up and running and users connected. The rising cost of diesel – which is used during power cuts and load shedding – is also putting pressure on mobile networks in the country.

Last month Zimbabwe’s central bank outlined plans to make the US dollar legal tender in the nation for the next five years.

Related posts:

*Top image source: Flag wave photo created by wirestock - www.freepik.com .

— The Staff, Connecting Africa

Innovation hub

Story

Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuzé program and the Orange Digital Center network.

Story

Hot startup of the month: Rwanda's Ampersand

Connecting Africa's hot startup this month is Rwanda's Ampersand, which designs, builds, and manufactures electric motorcycles and battery packs for motorcycle taxis.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

Story

Leveraging agritech to build resilience against climate change

By Francis Hook

ICT analyst Francis Hook discusses agritech in Africa and how the agricultural sector is using technology to build resilience against the negative effects of climate change and to ensure food security.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002