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State-owned mobile money operator NetOne must adopt a commercial approach to doing business, ICT, Postal and Courier Services Minister Dr Jenfan Muswere told the company’s annual general meeting recently.
“Full commercialisation should be implemented, and we need to adopt the ‘no pay, no service’ modus operandi. All the outstanding debt should be cleared in three months.
“We need a new performance management system and renewals of contracts should be based on performance with clear goals and targets,” he said.
NetOne, he added, needs to focus on developing data-driven innovations that have been occasioned by the coronavirus pandemic.
“NetOne needs to develop 10 more data-centric product lines and to achieve a 40 percent national telecoms revenue share.
“We look forward to seeing more participation on the mobile financial services sector anchoring on the fact that your shareholder, the Government, controls the greater amount of financial flows in the economy.”
Last year the company’s mobile money unit OneMoney’s market share rose from 6,4 percent to 14,4 percent.
“This can nevertheless be expanded significantly to occupy a leading position in the market. We expect OneMoney to have 40 percent national MFS (mobile financial services) revenue share before year-end,” added Minister Muswere.
Notwithstanding the fallout from the coronavirus pandemic, NetOne registered a $2 billion operating profit in 2020, as subscribers rose by 500 000 to 3,69 million from 3,17 million subscribers a year earlier.
Its market share rose from 24 percent to 28 percent as a result.
“The 35 percent growth in revenues from $4,36 billion to $5,89 billion in the face of the pandemic as well as the inflationary environment is commendable. It is encouraging to see year-on-year improvement in the business profitability, showing an operating profit of $1,99 billion growing by 39 percent from $1,44 billion in 2019,” said Minister Muswere.
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