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In the just-released Q1 2025 Sector Performance Report, the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) paints a picture of a telecom industry navigating turbulent economic waters with calculated resilience. The report reveals that Mobile Network Operators (MNOs) saw a ZWG 270 million revenue decline, slipping from ZWG 6.42 billion in Q4 2024 to ZWG 6.15 billion in Q1 2025, marking a 4.20% drop in total revenue.
However, this decline is counterbalanced by a dramatic 33.46% reduction in operating costs, as network providers restructured operations to survive Zimbabwe’s volatile economic climate. Operating costs fell from ZWG 5.53 billion to ZWG 3.68 billion, signaling what POTRAZ calls “aggressive efficiency strategies.”
“What’s remarkable is not the revenue dip, which reflects broader macroeconomic pressures, but the industry’s adaptability through smart cost management,” said Dr. G. K. Machengete, POTRAZ Director General. “These efforts lay a strong foundation for recovery and growth.”
The sector also reported a 50% drop in capital expenditure, sliding from ZWG 842.20 million to ZWG 423.81 million. This decline may reflect cautious investment in infrastructure amidst currency instability and a shifting digital landscape that includes preparations for 5G, AI integration, and satellite broadband adoption.
Meanwhile, Internet Access Providers (IAPs) recorded a 7.87% increase in revenue, rising from ZWG 2.09 billion to ZWG 2.26 billion. But the growth came at a cost—operating expenses surged by 14.93%, and capital expenditure skyrocketed by 252.39%, showing that providers are investing heavily to expand network capacity and meet rising data traffic demands.
An industry analyst based in Harare commented: “The revenue dip is concerning, but the level of operational recalibration taking place is a sign that telecom players are bracing for a new digital economy. Infrastructure investments and tighter spending are not just survival tactics—they’re preparation for future competitiveness.”
The postal and courier segment saw a softer performance, with revenue, operating costs, and capex all declining by 15%, 21%, and 68% respectively. This mirrors global trends, where digital communications increasingly displace traditional mail.
Despite the mixed metrics, POTRAZ remains optimistic.
“With exchange rate stability returning and digital transformation accelerating across Africa, we expect continued sector growth throughout 2025,” said Dr. Machengete.
The African Continental Free Trade Area (AfCFTA), expected to fuel a US$160 billion digital economy by 2025, provides further encouragement for Zimbabwe’s tech ambitions.
As Dr. Machengete concludes, “Zimbabwe has the potential to emerge as a competitive player in the African ICT landscape, contributing significantly to national development and regional digital integration.”
The numbers may reflect a dip, but the strategy signals a pivot—one that could define Zimbabwe’s telecom resilience in the face of shifting technological tides.
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