The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has announced new tariffs for the telecommunications industry in the Zimbabwe Gold (ZiG) currency following the introduction of the new currency by monetary authorities. According to Potraz, the voice tariffs for mobile network operators have been set at ZiG 0.0098 per second, while data is priced at ZiG 0.0928 per megabyte, and SMS costs ZiG 0.1207 per SMS. These new tariffs represent an estimated 80 percent increase compared to the previous rates.
The last review of telecom tariffs was conducted in October 2023 when the exchange rate was ZWL5600 to US$1. With the currency change to ZiG, the exchange rate is now US$1 to ZWL30674, reflecting an 81.74 percent depreciation in the local currency. As a result, the local telco tariffs before this adjustment are now valued at approximately 19 percent of their October 2023 value.
The new tariff adjustments come after a stakeholder engagement meeting organized by Potraz in Harare. The meeting aimed to address the challenges faced by service providers due to low tariffs. Dr. Gift Machengete, the Director-General of Potraz, emphasized the importance of tariff adjustments to ensure the sustainability of the ICT sector. He highlighted the need for adequate revenue to fund infrastructure upgrades, expand network coverage, and invest in research and development initiatives.
Potraz's annual sector performance report also highlighted the impact of hyperinflation on the sector and the necessity of adjusting pricing to mitigate the rising cost of service provision. The report emphasized the importance of aligning service charges with the increasing costs to maintain profitability, investment, innovation, and development within the sector.
Zimbabwe's telecommunications sector has been facing various challenges, including legacy debt, limited foreign currency availability, infrastructure vandalism, and frequent power outages. Dr. Machengete acknowledged the need for tariff increases while recognizing the importance of balancing affordability and ensuring the long-term viability of the sector.
The telecommunications sector tariff adjustment coincides with a 20 percent increase in electricity prices since October 2023, with the current rate standing at US$0.12 per kilowatt-hour.
