Econet ploughs ZW$12.2 billion into the national economy through taxes

LEADING telecommunications group Econet Wireless Zimbabwe contributed ZW$12.2 billion, a third of its revenues, into the country’s economy through taxes in 2020, figures in its annual report reveal.
According to the company’s annual report released recently, Econet’s contribution to the national fiscus went up by nearly 50%, from ZW$8.2 billion the previous year to ZW$12.2 billion this year. The telecoms giant’s tax contributions included income tax, value added tax, import duties, license fees, withholding taxes, special excise duties and pay as you earn for its employees.

James Myers, Econet Wireless Zimbabwe chairman

The contribution was after the group had registered ZW$35 billion in top line revenues, along with profit after tax of ZW$836.5 million in the full year to February 28, 2021.

Econet’s commitment when it comes to its statutory obligations over the years has positioned it as one of the top taxpayers in the country as the company fulfils tax obligations.

Dr James Myers, Econet Wireless Zimbabwe chairman, said the business works to ensure its tax policy remains robust and in alignment with the requirements of tax legislation.

“We believe that we will play a part in the resurgence of Zimbabwe’s economy through providing world class services to support the enhanced growth and digitalisation of the economy,” he said.

Taxation provides the revenue needed to mobilize government resources, build the nations’ infrastructure, support the public sector and help reduce poverty. Dr Myers said Econet remains committed to its founding vision of providing services to all people, without exclusion.

“As we transform our business to a digital services provider from being primarily a communications service provider, we aim to develop resilient business models that are relevant to our customers and our operating environment. Our services are gradually changing as we pivot the business to the new realities that we see emerging, as consumers demand a different digital experience as the world evolves and technology changes to cater for the new needs and expectations of our society,” he said.

Zimbabwe’s largest telecoms company has over the years contributed massively to the economy through direct and indirect employment-creation, playing its part in economic development and empowerment, and in poverty reduction.

In addition to it tax contribution, Econet created 1 159 direct jobs in 2020, paid ZW$41.7 million in commissions to brand ambassadors and invested over ZW$1 billion in network infrastructure.