‘Zim on verge of digital boom’

Enacy Mapakame

Business Reporter

Zimbabwe is expected to see a marked growth in data and internet usage this year, as consumption of digital products is projected to maintain an upward trajectory in line with global trends.

The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has forecast that Zimbabwe will likely see the telecoms industry playing a critical role in enabling other key sectors of the economy.

Already, the Covid-19 pandemic has accelerated the digital transformation in Zimbabwe after the country implemented social distancing measures to contain the spread of the pandemic.

As the country continues to claw back lost ground since the outbreak of the deadly pandemic, following the reopening of business activity across sectors, data and internet services are seen as key enablers to the recovery process.

“The year 2022 was characterized by the opening up of the economy, post-COVID. E-learning and e-conferencing continued to be the new norm, post-COVID, further accelerating Internet and data usage rates.

“With the large-scale rollout of 5G and other advances, 2023 will likely be an important year for the telecommunications industry. We are likely to see new applications we have never considered before, as the Internet of Things ecosystem takes centre stage,” said Potraz in the 2022 fourth quarter sector report.

The rollout of the 5G network is seen as a game changer for local businesses. Zimbabwe is among the first few African countries to launch 5G together with the likes of South Africa, Nigeria, Kenya and Botswana.

The 5G network has the potential to support millions of devices at ultrafast speeds and could be a powerful tool to transform global economies by improving accessibility, extending reach of mobile broadband, while supporting critical sectors such as health, financial, and education services sectors and manufacturing.

“Although 5G is very much in the “build” phase right now, as people come to truly understand its capabilities and limitations, we can expect to see the next generation of solutions based on 5G,” said Potraz.

According to the report, the total number of active internet subscriptions as of 31 December 2022 was 9 914 950, representing a 2,2 percent growth from 9 700 385 active subscriptions, as of 30 September 2022.

It further shows that the equipped international Internet bandwidth capacity increased by 6,8 percent to reach 553 700Mbps, from 518 489Mbps recorded in the previous quarter.

During the period under review, mobile internet and data traffic totaled 33 576.4 terabytes, which represents a 3,4 percent growth from 32 473,1 terabytes consumed in the third quarter of the year.

While there is a general increase in data and internet services, the regulator however also highlighted the need to ensure data privacy and security, which are a top priority in the year ahead.

This comes as consumers still fear unauthorised use of sensitive data, according to Potraz 2022 Consumer Satisfaction Survey. As a result, consumers want increased control over their personal data, and telecommunications companies need to work across sectors to create digital environments in which people feel safe.

The authority will also implement the Data Protection Act, which was promulgated in 2022. Like any other sector of the economy, the telecoms sector is not immune to the prevailing economic challenges affecting other businesses such as foreign currency shortages, inflationary pressures and erratic utilities supplies.

Potraz said: “For the sector and the economy to reap full benefits, issues of foreign currency availability, price and exchange rate disparity as well as power shortages need to be addressed. Inflation continued to put upward pressure on prices, thus negatively affecting consumer utility, in light of low disposable incomes.

“The credit crunch continues to stifle universal investment in next-generation technologies, to accelerate the digitization path. Nevertheless, opportunities are awash for organizations that can stay close to their customers and capitalize on industry innovations, and successfully navigate the economic landscape.”