Zimbabwe’s telecom tariffs lowest in SADC region: Survey

ZIMBABWE’S mobile telecommunication sector has once again emerged as having the lowest tariffs in the SADC region, challenging a perception among sections of the public, that data and voice tariffs in the country are too high.
A recent local survey shows that Zimbabwe’s mobile tariffs, that are pegged in the local ZWL currency, are now a mere US$0.003 for a megabyte of data and US$0.019 per minute for voice calls – significantly lower than the regional averages of US$4.60/GB and US$0.10 per minute respectively.

According to the survey, voice calls remain attractively priced at ZWL$188.8214 per minute, approximately US$0.019 (at the official exchange of $10 000:US$1) or US$0.0118 at the prevailing parallel rate of ZWL$16 000:US$1, while 1MB of data costs ZWL$29.8781, roughly about US$0.003.

The survey says Zimbabwe’s telecommunications industry’s non-cost reflective pricing structure is not only out of sync with rising inflation, but is also discouraging investment in the sector.

The contrast is also evident in other SADC countries, such as Zambia, where MTN charges US$0.0657 per minute for voice calls and US$0.0525/MB for data. Similarly, Vodacom customers in South Africa pay US$0.1025 for voice calls and US$0.079/MB for data.

In Namibia, MTC prices its voice calls at US$0.0789 per minute and data at US$0.04/MB. In Botswana, BTC’s rates stand at US$0.0966 per minute for voice calls and US$0.0725/MB for data.

The survey says Zimbabwe’s telecommunications industry’s non-cost reflective pricing structure is not only out of sync with rising inflation, but is also discouraging investment in the sector.

In addition to battling inflation, the telecoms sector is also struggling with excessive power outages, rising fuel prices for generators, foreign currency shortages, and vandalism of critical network infrastructure, among other challenges.

However, Postal and Telecommunications Regulatory Authority of Zimbabwe director-general Gift Machengete has dismissed speculation that Zimbabwe has one of the most expensive data prices in the world. “We continue to come across posts purporting to draw evidence from a UK website, cable.co.uk, that Zimbabwe has the most expensive data tariff in the world at US$43.75 per gigabyte (GB),” he said in a statement in the last quarter.

“As a matter of fact and contrary to that report, Zimbabwe has the lowest data tariff in the SADC region with an out-of-bundle tariff of ZWL14,930 which translates to USD3.21 per GB at the September 2023 official exchange rate while the SADC average is at US$4.60.”
However, analysts are urging policymakers to consider revising the current tariffs upwards.

They argue that an increase in tariffs would provide telecommunication firms with the necessary leverage to reinvest in infrastructure upgrades, ensuring the sustainability and expansion of the sector.

Industry experts say the current low tariffs, while beneficial to consumers, may hamper the ability of telecom companies to make essential investments in network improvements and technological advancements.