Online Reporter
Oliver Kazunga, [email protected]
ZIMBABWE has unveiled US$340,1 million worth of broadband investment projects expected to generate more than US$3,8 billion in revenue, signalling a major push to accelerate digital transformation and attract private capital.
The projects are contained in the Zimbabwe Investment and Development Agency (ZIDA) investment prospectus released recently and are expected to be implemented through Public-Private Partnerships and strategic private-sector investment.
The projects are expected to extend broadband services to more than 900 000 households and Small-to-Medium Enterprises (SMEs) connected to the electricity grid, connect a further 114 000 homes through fibre and provide wireless broadband to 500 000 users in rural and peri-urban communities, accelerating Zimbabwe’s transition towards a digitally connected economy.
In line with the aspirations of the National Development Strategy 2 (NDS2) and Vision 2030, the projects seek to stimulate economic growth, improve access to digital services and attract private investment into the country’s ICT sector.
The proposed investments comprise TelOne’s Wireless Broadband Deployment programme, TelOne’s Fibre-to-The-
Home (FTTH) rollout and Powertel Communications’ Gigabit Passive Optical Network (GPON) project.
According to the ZIDA prospectus, the projects are designed to address low internet penetration by improving broadband speed, reliability and quality while expanding connectivity to households, businesses and under-served rural communities.
The largest investment opportunity is TelOne’s Wireless Broadband Deployment project, which requires US$263,2 million and is projected to generate US$2,9 billion in revenue.
The project seeks to improve internet connectivity in Midlands, Manicaland, Masvingo and Matabeleland South through the deployment of approximately 1 600 wireless base stations targeting 500 000 rural and peri-urban users.
“The Wireless Broadband Deployment project aims to improve internet connectivity in under-served regions of Southern and Eastern Zimbabwe, including Midlands, Matabeleland, Masvingo, and Manicaland.
“Promoted by TelOne Private Limited, this US$263,2 million initiative involves deploying approximately 1 600 wireless base stations under a Build, Lease, Maintain, and Transfer (BLMT) Public Private Partnership model,” reads part of the prospectus.
“The project targets connecting 500 000 users in rural and peri-urban areas, addressing the digital divide and fostering digital inclusion.”
TelOne’s Fibre-to-the-Home project proposes a US$50 million investment to connect an estimated 114 000 homes across Zimbabwe through broadband infrastructure.
“The project involves the installation of Fibre to the Home (FTTH) broadband infrastructure to connect approximately 114 000 homes across various locations in Zimbabwe,” it said.
The FTTH project is projected to generate US$719 million in revenue and will be implemented under a Build, Lease, Maintain and Transfer (BLMT) Public-Private Partnership model.
Powertel Communications’ GPON project requires an investment of US$26,9 million and is projected to generate revenues of US$231 million.
The project targets more than 900 000 households and SMEs connected to the electricity grid via fibre-optic infrastructure deployed along existing power lines.
“The project involves the deployment of optic fibre network that utilises GPON technology for the provision of ICT services, mainly broadband internet.
“The Powertel GPON project seeks to deliver high-speed internet and telecommunications services. Overhead optical fibre cables will be deployed on existing powerline infrastructure in metropolitan and rural areas around Zimbabwe.
“GPON technology will be deployed as the active equipment to enable customers to access internet services over the optical fibre network. The target market is the more than 900 000 households and SMEs connected to the electricity grid who need tactile internet that is highly available, reliable, secure and fast,” said the agency.
The projects are forecast to deliver strong returns, with TelOne’s Wireless Broadband Deployment programme expected to achieve the highest return on investment at 60 percent, followed by Powertel’s GPON project at 56,94 percent and TelOne’s FTTH rollout at 47,1 percent.
Projected payback periods range from four years and nine months for the FTTH project to five years for the wireless broadband initiative and 10 years for the Powertel GPON rollout.
If implemented, the three projects would rank among Zimbabwe’s biggest broadband infrastructure investments, widening access to high-speed internet, supporting digital innovation, strengthening service delivery and creating new opportunities for businesses and communities as the country advances towards an upper middle-income economy by 2030.
Bongani Ndlovu