Brace Up for Another Tariff Review As RTGS Value Weakens.

The data prices that were last reviewed on Friday the 23rd of August 2019 are highly likely to be reviewed as inflation continues to soar in the wake of a weakening Zimbabwe Dollar.

Sources close to TechnoMag confirmed that in the spirit of sustainance, mobile operators have already lobbied for a tarrif review which is now inevitable as the cost of operation against revenue generation has become unsustainable.

The local currency is now at par with the Rand on strength against the United States Dollar (USD) a new low since 2009 when the multicurrency regime was adopted and later dumped on the 24 June 2019 by the government.

The price of bread went up by 45% to ZWL$10 on the 9th of September 2019 following a sharp increase in the price of wheat and an adjustment in the price of fuel which saw Petrol and diesel being adjusted by 10c & 17c per litre to ZWL$9.96 & ZWL$10.42 respectively. One of the affected customers in Ask to have money sent from the UK/SA for 0% fees & they can save the rest only on Sasai until 31 Oct 2019. Download Sasai local supermarket had this to say, “This latest bread price increase has just put it beyond my reach yet my family is reliant on bread and maize meal for our daily meals. Our wages have not been increased and I wonder how we are going to survive as a family of five”.
Industry is not spared as the cost of production has risen putting pressure on profitability due to the weakening Zimbabwe dollar now trading at ZWL$15 for USD$1. This means costs of raw materials and other services will be heavily affected resulting in pressure to increase prices to remain afloat. The price of maize meal went up by 79% to ZWL$1,300 per metric tonne meaning the final price will definitely go up by close to 100% from the current ZWL$34 for a packet of 10kg.

While the increase in the price of fuel has had its impact, the price is still the cheapest in the region and is likely to go up from the current USD$0.66 per litre to somewhere close to the average world price of USD$1.16 per litre. This will again have ripple effects in pricing across the whole economy as fuel is critical for operations. Most companies are now running on generators to cover the 16 to 18 hour gap of load shedding. Some have reduced capacity due to the lost production hours with no power.

This all means that the Data, Voice and SMS prices will be adjusted to absorb the pressure on profitability after the price changes in all the variables highlighted. A snap shot at the regional prices of data comparison showed the following:

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