More Africa NewsZimbabwe: regulator authorizes further increase in telecoms tariffs

October 26, 2023by myles0

Since 2019, Zimbabwean telecoms operators have been authorized to increase their prices several times in order to face the challenges of the local operational context. The last price adjustments date back to February and April 2023.

The Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has approved a further increase in tariffs for services provided by telecoms companies. This new adjustment only concerns prices in Zimbabwean dollars (ZWL) while those in US dollars remain unchanged.

Mobile phone companies Econet Wireless, NetOne, TelOne, Telecel have all announced new prices coming into effect this week.

This new price adjustment comes approximately eight months after POTRAZ authorized telecoms companies to increase the prices of their services in two stages. A first increase of 50% was immediately implemented after the measure was announced in February, while the second came into force from April 1. The previous price increases approved by the regulator date from July 2022 and September 2021.

These initiatives are part of the regulator’s efforts to limit the impacts of the local operational context on the activities of telecom operators. The latter are particularly faced with hyperinflation, the weakness of the local currency, the shortage of foreign currencies, the increase in operating costs, the increase in vandalism on infrastructure, power cuts, etc.

Furthermore, POTRAZ recently submitted to the government a new pricing model based not only on the local currency, but also on the US dollar. The measure should make it possible to guarantee price stability on the national telecoms market.

Source: Agence Ecofin

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