daniel chigunwe
Business Writer
Econet’s financial performance for the year ending February 29, 2024, reflects significant growth despite challenging conditions.
Inflation-adjusted revenue for the period reached $14,8 trillion, marking a 133 percent increase compared to the previous year.
This growth was driven by a 34 percent increase in voice volume and a 36 percent rise in data volume, supported by the company’s network modernisation efforts and cost optimisation strategies that resulted in a margin profitability above 45 percent.
According to Econet’s board chairman, Dr James Myers, the depreciation of the local currency impacted the group’s financial results, with exchange losses amounting to $3,2 trillion, equivalent to 22 percent of revenue.
However, the retirement of foreign currency-denominated debentures in October 2023 significantly reduced the group’s exposure to exchange rate fluctuations, positively impacting profitability.
Looking ahead, Econet is optimistic about the benefits of Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), introduced in April 2024.
This new currency is expected to provide more stability and facilitate better financial planning and reporting.
“Our strategic partnerships with key equipment vendors have enabled us to accelerate our network modernisation after several years of underinvestment due to limited foreign currency availability,” Dr Myers said.
The company has modernised over 1 012 sites with 4G high-capacity base stations, concentrating upgrades in Harare, Bulawayo, and the Manicaland region. An additional 550 base stations are planned across the country, aimed at further improving service coverage and quality.
This expansion has been bolstered by the Government’s allocation of spectrum within the 700MHz frequency band, which enhances the reach of existing base stations, providing better service to customers at the periphery of current coverage limits.
Econet added more than 50 new base station sites, contributing to increased network capacity and reliability.
“This investment has enhanced our quality of service and increased network coverage, ensuring that our customers enjoy superior connectivity,” Dr Myers stated.
Bongani Ndlovu