The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has approved a tariff adjustment for local telecom companies, driven by the continuous depreciation of the Zimbabwean dollar (ZWG). In response, major telecom operators have adjusted tariffs to align with the economic challenges affecting the sector. Notably, the tariffs for services in US dollars remain unchanged.
The adjusted tariffs include ZWG 0.0177 per second for voice calls, ZWG 0.1660 per MB for data, and ZWG 0.2161 per SMS. Industry experts emphasize that these price hikes are necessary for telecom companies to sustain service quality and financial stability. With inflation and the devaluation of the local currency significantly increasing operational costs, the adjustments became inevitable.
Read More: MTN calls for upward review in tariffs
Zimbabwe’s economic difficulties have severely impacted the telecom industry. In September 2024, the country raised interest rates and devalued its gold-backed currency by 43% to address ongoing financial instability. These economic shifts have led to skyrocketing service costs, especially in sectors like telecommunications, which rely heavily on imported equipment and software.
Impact on Consumers and Operators
While the adjusted tariffs mean higher costs for consumers, telecom operators argue that these increases are essential to continue delivering reliable services in the face of rising expenses. In 2023, telecom companies in Zimbabwe requested permission to peg their tariffs to the US dollar, seeking protection from hyperinflation. Although Potraz approved a 50% price increase, the rapid devaluation of the ZWG has made it difficult for operators to cover their costs.
Despite these challenges, the telecom sector has seen some positive developments. In September 2024, Starlink officially launched its services in Zimbabwe, intensifying competition in the market. With Starlink now available directly from its website, local telecom providers face increasing pressure to improve their offerings.
At the same time, a new report indicated that telecom companies in Zimbabwe could face fines of up to $5,000 for poor service delivery under revised regulations. Potraz has introduced these measures to protect consumers from unreliable services, including dropped calls, slow internet speeds, and delayed messages.
The telecom sector in Zimbabwe is navigating a difficult economic environment, with rising costs and increasing competition shaping the industry’s future.
