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

Video

Interview: Qualcomm execs on mentorship for African startups

Qualcomm Technology VP for Engineering, Sudeepto Roy, and Elizabeth Migwalla, VP for Government Affairs, join Connecting Africa for a video interview about Qualcomm's Make in Africa Mentorship Program.

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

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.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up