daniel chigunweBusiness Writer
The country’s telecoms and technology leader, Econet Wireless Zimbabwe, has reported significant strides in its business transformation and financial performance for the third quarter ended November 30, 2024.
The company credits its reorganisation and modernisation initiatives for driving growth across its Mobile Network Operations (MNO) and Financial Technology (FinTech) segments.
Tatenda Ngowe, Econet’s group company secretary, highlighted the successful completion of a core network upgrade as a “pivotal milestone” in the company’s digital transformation journey.
“This critical enhancement and modernisation effort has significantly improved the central part of the network, integrating systems such as charging, billing and application servers in addition to enabling advanced digital and AI features,” Ngowe stated.
The upgraded network now supports high-quality voice calls over 4G/LTE (VoLTE) and advanced digital use cases, reflecting Econet’s commitment to innovation. The company also launched Smart4Home, a fixed wireless product targeting high-volume data users, catering to Zimbabwe’s growing demand for reliable and fast internet services.
Base station modernisation continued apace, with 16 new sites established, 33 radio access sites upgraded and 270 microwave access links enhanced. Additionally, Econet commissioned 20 new 5G sites nationwide, further solidifying its position as a leader in Zimbabwe’s telecommunications sector.
Econet posted a 69 percent revenue growth in ZiG compared to the same period last year, driven by a 42 percent increase in MNO revenue and the acquisition of its FinTech businesses, which became subsidiaries in March 2024. However, Ngowe cautioned stakeholders about the challenges of interpreting financial data in a hyperinflationary environment, noting that prior period figures were adjusted for currency changes.
Voice and data usage surged by 20 percent and 36 percent, respectively, compared to the same quarter in 2023. “The envisaged growth in mobile broadband and digital services requires the business to continue modernising the network infrastructure to remain agile in its service offering and deliver the expected quality of service,” Ngowe emphasised.
Capital expenditure reached 18 percent of revenue year-to-date, underscoring the telecoms company’s commitment to sustaining infrastructure improvements and meeting rising customer demands.
Econet’s FinTech division also delivered robust results, with a 55 percent increase in active mobile money subscribers and a 79 percent rise in wallet funding. The company is actively onboarding payment partners to establish a universal payment platform that prioritises customer convenience.
“The growth in mobile money volumes and transactions reflects gains we continue to make towards improved financial inclusion,” Ngowe noted.
The life insurance business, EcoSure, reported a 51 percent increase in transaction volumes, driven by the launch of digital bundled products. Meanwhile, Moovah, the short-term insurance arm, achieved a 25 percent growth in its customer base, bolstered by new acquisitions and endorsements in both motor and non-motor insurance.
Econet declared an interim dividend of US$0.36 cents per share for the quarter, reaffirming its commitment to delivering value to shareholders.
Looking ahead, the company is optimistic about growth opportunities in digital payments, particularly with the rising adoption of mobile wallets.
“The Group remains committed to delivering value to all its stakeholders and will continue to invest in digital transformation, embracing AI, and actively pursuing strategic opportunities to enhance and complement our product and service portfolio,” Ngowe said.
Econet Wireless Zimbabwe’s robust performance reflects its strategic focus on innovation and customer-centric solutions. With its continued investment in technology and a clear vision for the future, the company is well-positioned to remain a dominant force in Zimbabwe’s telecommunications and financial services sectors.
Online Reporter