Online Reporter
Ivan Zhakata and Kuda Gumbo
The telecommunications and digital services sector is under mounting pressure from high taxes, infrastructure vandalism, persistent power outages and policy bottlenecks with industry players warning that the challenges are eroding investment capacity, network expansion and service affordability.
The concerns were raised at a high-level ICT stakeholders’ engagement meeting convened by the Minister of Information Communication Technology, Postal and Courier Services, Tatenda Mavetera, in Harare on Wednesday that brought together operators, internet service providers, courier companies, professional bodies and the regulator.
Speaking on behalf of the Telecoms Operators Association of Zimbabwe (TOAZ), Ms Maureen Chirambaguhwa, commercial director at TelOne, said telecom operators face a combined monthly tax and levy burden of about 30 percent, creating severe cash-flow constraints.
“Operators pay 15,5 percent VAT, a 10 percent excise duty on airtime, a 2 percent monthly licence fee, a 1,5 percent Universal Services Fund levy, spectrum and numbering fees, as well as non-deductible operating licence fees,” she said.
Ms Chirambaguhwa said the situation was compounded by non-uniform local authority charges across 92 urban and rural councils, while taxes were levied on billed revenue despite post-paid customer collections taking more than 60 days.
“These taxes are calculated on billed revenue, yet collections are delayed, which creates serious working capital challenges,” she said.
The association called for the harmonisation of national and municipal levies, reduced import duties on ICT equipment, zero-rating of VAT on essential network infrastructure and incentives for rural network expansion.
The association also urged the Government to shift excise duty from an invoice to a cash basis and grant tax rebates for locally assembled devices to support industrialisation and job creation.
Power shortages were also cited as a major cost driver, with operators increasingly relying on diesel generators and solar installations.
The association proposed tax exemptions on renewable energy equipment used for ICT infrastructure and the establishment of a national carbon footprint registry to support green financing.
It further called for expanded utilisation of the Universal Services Fund to support backbone infrastructure in economically non-viable but strategically important areas and argued that this would help bridge the digital divide and advance NDS2 and Vision 2030 objectives.
Infrastructure vandalism also featured prominently, with TOAZ proposing a “Call Before You Dig” national policy to prevent accidental damage to underground fibre networks during construction works.
Representing the Zimbabwe Internet Services Providers Association (ZIAPA), Ms Dumisani Nomagugu Nkala, managing director of Telco Broadband, said shrinking margins were threatening the sustainability of operators.
“We need telecoms infrastructure to be prescribed as a critical national asset, with fast-tracked penalties for vandalism,” she said.
“Money spent repeatedly repairing vandalised infrastructure is money taken away from new investments.”
Mr Nkala also criticised the compounding nature of excise duty along the telecoms value chain and said it inflated costs and undermines affordability.
“By the time services reach the end-user, excise duty has compounded several times, making data more expensive than it needs to be,” she said.
ZimPost postmaster-general Mr Maxwell Chitendeni said the parastatal remained a key platform for last-mile government service delivery, particularly in rural and underserved communities.
“ZimPost has universal physical reach and is positioned to be a one-stop access point for government services,” he said, adding that there were ongoing digitisation of postal, financial and logistics services.
DHL Zimbabwe country director Ms Susan Katsukunya said there was a growing demand for technology-driven logistics and cross-border e-commerce, urging the Government to review customs valuation thresholds that make clearing low-value imports disproportionately expensive.
The Computer Society of Zimbabwe chief executive officer, Ms Viola Dondo, called for urgent implementation of AI ethics frameworks, cybersecurity awareness programmes and digital literacy training, starting at the school level.
Responding to stakeholders, Minister Mavetera said the Government was actively engaging the Ministries of Finance and Local Government to review taxes, municipal charges and wayleaves affecting the ICT sector.
“We are acutely aware that affordability remains a critical determinant of digital inclusion,” she said.
“Government is working to create a more enabling operating environment, while ensuring that ICT services become more accessible to all Zimbabweans.”
She said while consultations on tax relief continue, operators should also review pricing models.
“Lower data costs are not just a social imperative; they are also a growth strategy that expands usage and improves sector revenues through volume,” the minister said.
Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) director-general Dr Gift Machengete said improved macroeconomic stability in 2025 had created a more predictable operating environment for the sector.
“The relative stability of the exchange rate supported planning, consolidation and network expansion by operators,” he said.
“These gains provide a useful foundation upon which we can collectively build in 2026.”
The meeting underscored calls for urgent policy reforms, coordinated enforcement against vandalism and sustained public-private collaboration to ensure ICTs drive economic transformation under National Development Strategy 2 and Vision 2030.
