HARARE – Econet Wireless Zimbabwe Limited has announced ambitious plans to transform the telecommunications industry in Zimbabwe, focusing on network modernisation, digital innovation, and financial technology integration.
These strategic initiatives were detailed in the company’s latest trading update for the first quarter ending May 31, 2024.
In a significant move, Econet has acquired Financial Technology (FinTech) businesses from EcoCash Holdings Zimbabwe Limited, excluding Steward Bank, and is currently integrating these assets into its operations. This integration aims to create value for stakeholders through synergy, streamlined processes, and enhanced business growth.
“We are excited about the integration of the mobile network operations and financial technology businesses, which will result in synergies being realised, streamlining of processes and propelling the business forward,” said Tatenda Ngowe, Group Company Secretary.
Network Modernisation and 5G Expansion
Econet Wireless Zimbabwe, a leading telecommunications provider known for its mobile phones, social media, data bundles, music streaming, mobile gaming, and virtual assistant services, has prioritised network modernisation to enhance service delivery. The company commissioned over 30 new sites across the country during the quarter, significantly improving network performance and service quality.
The company is also increasing its 5G penetration, with plans to commission additional 5G sites by the end of the financial year. This expansion is in response to the growing demand for high-speed data services.
Surge in Data and Voice Usage
The trading update revealed substantial growth in data and voice usage, with data usage increasing by 74% and voice usage by 46% compared to the previous year. Consequently, data and voice revenue now contribute 42% and 38% respectively to the mobile network operations revenue.
Robust FinTech Growth
Econet’s FinTech segment has shown strong performance, driven by a growing active customer base and increased usage of digital financial services. The mobile money business, in particular, has seen its active customer base grow by 189% compared to the first quarter of the previous year.
“The synergies between our digital insurance platforms and mobile money ecosystem continue to drive increased adoption and cross-selling opportunities,” noted Ngowe.
Financial Performance and Future Outlook
The company declared and paid an interim dividend of 0.26 US cents per share for the quarter ended May 31, 2024. Looking ahead, Econet expects the rising demand for data and digital services to continue reshaping its mobile network operations and capital investments.
“We are planning to leverage the reintegration of the financial technology businesses to drive innovation as we respond to the evolving needs of our customers,” added Ngowe.
Econet Wireless Zimbabwe’s strategic initiatives underscore its commitment to revolutionising the telecommunications landscape in Zimbabwe, fostering digital innovation, and integrating cutting-edge financial technology solutions to meet the dynamic needs of its customers.
