dyton mupawaenda
Lex Hove-Correspondent
Through ground-breaking achievements, the Second Republic is making strides in transforming Zimbabwe into an upper middle income economy by 2030.
Zimbabwe’s mobile phone penetration has soared to an unprecedented 97,5 percent, marking a significant milestone in the nation’s technological landscape. According to the latest report from the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), the third quarter of the year witnessed a six percent growth in active mobile subscriptions, propelling the country’s connectivity to new heights.
POTRAZ director-general, Dr Gift Machengete, gave the statistics in the sector performance report released recently.
The report highlighted that active mobile subscriptions during the third quarter surged to 14 794 579 from the 13 995 937 recorded in the second quarter, showcasing an impressive uptake of mobile services across the nation.
Furthermore, the report revealed a 4,9 percent increase in the country’s internet penetration rate, reaching a notable 70,1 percent compared to the previous 65,2 percent.
Notably, mobile internet and data traffic experienced a 6,2 percent growth, recording a staggering 44,67 Petabytes, up from 42,06 Petabytes. This surge signifies an escalating reliance on digital platforms and an increasing appetite for online services among Zimbabweans.
The driving force behind this remarkable growth in mobile subscriptions was the substantial expansion of NetOne’s subscriber base boosted by the ICT policy shaped by President Mnangagwa’s Government.
During the same period, Econet realised a marginal subscriber growth of 2,2 percent, while Telecel faced a continued decline. Econet’s modest 2,2 percent variance translated to a subscription increase from 10 094 328 to 10 319 991.
In stark contrast, NetOne experienced an impressive surge of 17,4 percent, elevating its subscriber base from 3 554 075 to an impressive 4 171 224.
This significant shift in market dynamics emphasises the successful implementation of the ICT policy in mobile and data penetration which will turn Zimbabwe into an upper middle income economy by 2030.
Preferences and choices of Zimbabwean consumers in the telecommunications sector are now widened and plenty respectively. NetOne’s robust growth suggests a combination of competitive pricing, enhanced service quality, and strategic marketing initiatives, capturing the attention and loyalty of an expanding user base.
As Zimbabwe continues to embrace the digital age leaving no one and no place behind, the implications of such substantial growth in mobile connectivity are far-reaching.
Improved access to mobile services and the internet has the potential to drive economic development, empower communities, and bridge information gaps. Businesses can leverage this pervasive connectivity to reach a wider audience, fostering innovation and entrepreneurship.
However, it is crucial for stakeholders, including regulators and service providers, to ensure that this digital transformation is inclusive and reaches all corners of the country.
Bridging the urban-rural digital divide and addressing affordability challenges will be imperative to maximise the benefits of this digital revolution for all Zimbabweans.
Zimbabwe’s mobile phone penetration reaching 97,5 percent is a testament to the nation’s strides in embracing technology leaving no community behind in digitalisation. The surge in mobile subscriptions, coupled with increased internet penetration, positions Zimbabwe on the cusp of a digital renaissance. As the country continues to harness the power of connectivity, it is essential to channel this momentum towards fostering a digitally inclusive and economically vibrant future for all its citizens.
In a bid to address multifaceted challenges and propel the nation towards a brighter future, the government of Zimbabwe is demonstrating unwavering commitment to innovation and holistic solutions.
From addressing violence against women and girls to the reconstruction of critical infrastructure, the Second Republic is forging ahead on a trajectory of development. Under various initiatives, including the Post Cyclone Idai Recovery and Resilience Programme, the government has successfully rehabilitated and reconstructed more than 400km of road network in Manicaland Province.
This remarkable feat is a testament to the strides made in the aftermath of the devastating Cyclone Idai disaster in 2019.
Key projects include the construction of the Nyahodi Number 4 Bridge and the 17km Machongwe-Rusitu Road, connecting Chimanimani and Rusitu. The completion of the 23km Kopa-Jopa Road, commissioned by President Mnangagwa in 2021, exemplifies the government’s commitment to improving the livelihoods of Zimbabweans through robust infrastructural development.
Completed in 14 months at a cost of 41,2 billion, the project upgraded four bridges to double-lane high-level standards, bringing joy to communities affected by Cyclone Idai.
Recognising the importance of drought-proofing agriculture and ensuring food security, the government has earmarked $220,8 billion for irrigation rehabilitation.
This initiative aims to reduce reliance on rain-fed agriculture, particularly vulnerable to climatic shocks.
Approximately 350 000 hectares of cereals are set to be transformed into irrigable land, with a target of producing 1,8 million tonnes of food, crucial for achieving national self-sufficiency.
The Smallholder Irrigation Revitalisation Programme, focusing on rehabilitating 5,202 hectares, is designed to enhance food security and help smallholder farmers adapt to and mitigate the impacts of climate change.
Beyond infrastructure and agriculture, the government is addressing societal challenges, notably violence against women and girls. Officials emphasise the need for comprehensive strategies to tackle this issue. The commitment to social issues alongside economic and infrastructure development reflects the government’s determination to create a well-rounded and prosperous society.
In the face of economic challenges and uncertainties, the Reserve Bank of Zimbabwe (RBZ) has recently affirmed the resilience and profitability of the country’s banking sector. The latest quarterly banking sector report, covering the period up to September 30, 2023, reveals an impressive aggregate profit of 44,67 trillion Zimbabwean dollars.
This figure marks a significant leap from the $341,28 billion reported during the same period in 2022, underlining the sector’s robust growth. It should be emphasised that banks are important financial vehicles in taking Zimbabwe into an upper middle income economy by 2030.
A key factor driving the profitability of Zimbabwe’s banking sector is the substantial contribution of non-interest income. The RBZ identifies this as a primary driver, signalling that banks are diversifying their revenue streams beyond traditional interest-based earnings.
Furthermore, the report highlights the sector’s resilience, attributing it to robust risk management practices. In an era where global economic landscapes are increasingly unpredictable, the importance of effective risk management cannot be overstated. Zimbabwe’s banking institutions, it seems, are navigating these waters adeptly, safeguarding their stability and profitability.
Another contributing factor to the sector’s success is its sound capital and liquidity positions. Adequate capitalization ensures that banks can absorb unexpected losses, while liquidity provides the flexibility needed to meet short-term financial obligations. The RBZ’s affirmation of strong capital and liquidity positions underscores the sector’s ability to weather economic storms and maintain a steady course.
The positive indicators from the banking sector align with broader economic aspirations. The RBZ’s confidence in projecting Zimbabwe as an upper-middle-income economy by 2030 is an encouraging sign. While challenges persist, the remarkable growth in the banking sector sets a precedent for the nation’s overall economic trajectory. Zimbabwe’s banking sector emerges as a beacon of stability and profitability, defying economic odds and showcasing resilience.
As Zimbabwe continues on its path towards becoming an upper-middle-income economy by 2030, the success of its banking sector becomes a crucial cornerstone.
Online Reporter