By Albert Mpofu
The postal and telecommunications industry in Zimbabwe has been severely affected by an unstable economy, resulting in significant challenges and obstacles. A recent report from the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) highlights the detrimental impact of high operating costs driven by inflation and an unstable local currency.
Although the sector experienced an increase in total revenue during the first quarter of 2023, operational costs remained high. The report states, “Total revenue generated by the postal and courier sector increased by 23.5 percent, reaching ZWL5.74 billion, compared to ZWL4.66 billion in the fourth quarter of 2022. However, operating costs rose by 28 percent to ZWL5.45 billion from ZWL4.26 billion in the same period.”
Potraz attributes these surges in operating costs and revenues to the country’s inflationary environment. The regulator emphasizes that the performance of the postal and telecommunications sector is directly influenced by the economic situation. Factors such as inflation, limited access to credit, reduced consumer spending, and inadequate foreign currency continue to pose significant challenges for the industry.
Unstable electricity supply further exacerbates the sector’s difficulties, impacting service quality and raising the cost of service provision. Additionally, the insufficient availability of foreign currency hampers network expansion and maintenance efforts. Unlike other services that can rely on local supply, the telecommunications sector heavily relies on imports for equipment, software, and bandwidth.
Potraz urges the government to prioritize the sector by allocating sufficient government expenditure, mobilizing resources, and ensuring access to foreign currency. These measures are crucial to enable the sector to operate at its full capacity.
According to the report, there was a 16 percent decrease in mobile voice traffic during the first quarter of 2023, with 2.5 billion minutes recorded compared to 3 billion minutes in the fourth quarter of 2022.
