TELECOMMUNICATIONS firm, Econet Wireless Zimbabwe, has deployed an additional 32 5G base stations in Harare with an additional 120 sites planned to modernise its network.
The rollout comes as Econet is seeking to improve user experiences and increase its ability to compete at a global level in terms of quality and capacity.
In a statement accompanying its interim financial results for the half year ended August 31, 2024, Econet said the continued network infrastructure modernisation programme had a positive impact on the business during the period.
“In working towards our vision of ‘a digitally connected future that leaves no Zimbabwean behind’, we have deployed an additional 32 5G base stations in Harare with an additional 120 sites planned,” Econet board chairperson James Myers said.
“With this densification, the maximum user throughput has increased significantly, and the business is already realising significant traffic growth in combined data market share, improved quality of service and user throughputs.
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“We expect that this aggressive roll out of next generation data connectivity will allow us to improve user experiences and increase our ability to compete at a level of quality and capacity that is truly world class.”
He said Econet continued investing in alternative and green power solutions as the national grid power supply remained erratic.
“The ongoing initiatives include the upgrade of alternative power for our data centres to ensure uninterrupted services to our customers,” Myers said.
During the period under review, mobile network operations data and voice usage grew by 56% and 36%, respectively, relative to the first half of last year, due to the ongoing network modernisation.
Demand for data continued on an upward trajectory and translated to a revenue contribution of 47% against 38% in the previous comparative period. Meanwhile, voice revenue contribution reduced to 41%, from 49%, owing to an increase in data usage.
Group revenue was ZiG5,02 billion for the period under review, from a 2023 comparative of ZiG4,71 billion.
Myers said capital expenditure for the period which was largely channelled towards the modernisation of the network infrastructure amounted to 26% of revenue, against a comparative of 10%.
“The shift in customer needs from traditional services such as voice and short message services to data intensive services underscores the need for the business to be innovative and to invest appropriately to ensure that customer experience is not compromised,” he said.
“Network expansion and upgrades which all require foreign currency remain imperative to support business sustainability and offer competitive services.”
The mobile money business recorded a 26% growth in revenue, driven by an increase in subscribers while wallet funding increased by 47% owing to a combination of increased cash-in transactions, payroll processing into wallets and international remittance receipts.
In April, Econet acquired all fintech businesses under its sister company, EcoCash Holdings Zimbabwe Limited.
These units are EcoCash (Private) Limited, VAYA Technologies Zimbabwe (Private) Limited, Econet Insurance (Private) Limited, Econet Life (Private) Limited, MARS Zimbabwe (Private) Limited and Maisha Health Fund (Private) Limited.
Myers said Econet would leverage synergies between the mobile network operator and fintech businesses.
A near 52% decrease in exchange losses led to a profit after tax of ZiG347 million for the half year, up from the ZiG272 million recorded in the comparable period last year..
