ZIMBABWE’S telecommunications companies, which are battling rising operational costs, are set to implement long-anticipated tariff increases for voice, data and SMS bundles after the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) gave the nod on Monday.
The new tariffs affect promotional bundle prices only, with the headline tariffs for all services remaining unchanged.
The approved prices, effective today, come at a time when telecom operators have been struggling to stay afloat amid skyrocketing costs, foreign currency shortages and a volatile economic environment marked by a weakening local currency.
Although the industry regulator Potraz first approved the tariff increases late last year, operators had delayed implementation in a move designed to shield consumers during the festive season.
But with the Zimbabwe Gold (ZiG) currency having shed 43% of its value since its launch in April 2024 and the government recently repealing Statutory Instrument 81A, which enforced the use of the official exchange rate, telecom firms say they have been left with no option but to adjust prices.
Econet Wireless, the country’s largest mobile network operator, announced the changes in a notice to customers on Monday, saying: “Please be advised that we are adjusting bundle prices (Voice, Data and SMS) effective Wednesday, 21 May 2025.”
Communication between Potraz and one of the operators reveals that while there is very little movement on the US dollar bundle prices, the ZiG bundle tariffs have been reviewed upwards by an average of 35%.
The adjustments come against a backdrop of rising operational costs that are severely constraining the sector, with Potraz warning, in its latest Annual Sector Performance Report released earlier this month, that escalating costs were threatening the profitability and long-term growth of the sector.
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According to the report, mobile network operators (MNOs) experienced a 42,83% surge in operating expenses in 2024, significantly outstripping a modest 14,45% growth in revenue.
Total sector revenue grew from US$626,2 million in 2023 to US$716,6 million in 2024, while operating costs ballooned from US$256 million to US$365,6 million — undermining profit margins.
Despite the financial pressures, the MNOs — Econet, NetOne and Telecel — collectively invested US$83,3 million in infrastructure in 2024, up from US$26,9 million the previous year. The capital went into network expansion and technology upgrade.
