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The Postal and Telecommunications industry experienced growth in nominal revenue in the third quarter of 2023, by 53,3 percent revenue, 50 percent operating cost and, 2,4 percent capital expenditure.
The growth in operating costs was higher than the growth in revenue, the trend in operating costs and revenue is attributable to the inflationary operating environment. The immediate interventions should be made to save the situation in the next quarter.
The need for business to undergo digital transformation, positive sector growth is anticipated. The tariff reviews initiated are expected to improve revenue-to-cost ratios of operators. This will increase investment by operators and enhance service delivery through coverage and quality of service.
The sector is facing foreign currency resources that are required to upgrade, expand and maintain telecommunication network. Low disposable incomes in the country remain a major constraint on service affordability and uptake by postal and telecommunication users.
The sector is affected by power outages which increase the cost of services provision. The monetary and fiscal policy measures are expected to stabilize macroeconomic environment, which is necessary to facilitate investment in the sector.
Investment levels and economic wellbeing improve, it is expected to that demand for service will boost the performance of the sector. There is need to come up with initiatives aimed to promote local content that can be uploaded on internet. This can be done through embracing and promoting innovative projects by both private and public players.
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