Econet Wireless Zimbabwe Reviewed Abridged Consolidated Financial Results for the half year ended 31 August 2021

November 30, 2021|

Econet Wireless Zimbabwe Limited ( HY2022 Interim Report

Chairman’s statement

We remain focused on furthering the digital transformation of our products and services as we transform to a fully-fledged digital services provider (DSP). We are investing into artificial intelligence (AI), machine learning and gamification as we seek to better understand our customers’ needs and expectations


Our efforts in pioneering innovative digital products, in addition to providing an unparalleled customer experience continue to drive our performance thereby helping us to retain our market leadership. We have made meaningful strides in our digital transformation journey. The journey requires us to scale-up our already robust digital infrastructure and continuously enhance our staff capabilities so that our customers are able to experience the digital world in a more intimate way. Our vision remains a digitally connected future that leaves no Zimbabwean behind.

Regulatory review

In September 2021, the telecommunications regulator approved a cost-based tariff adjustment, for operators, based on the telecommunications price index (TPI) for voice, data, SMS and USSD; and fixed data services respectively.

Operations review

The business is on a journey that will reposition our communications business to a digital services business. We are supporting our customers who are adapting to the imperatives ushered in by new ground breaking technologies that are now available. Our positioning shifted from “Enhancing Lives” to “Live the difference.” This change in our messaging highlights how we are transforming our customers’ lives through our innovative digital products and service offerings and envisaging a bold new world of endless possibilities. The COVID-19 era has seen the adoption of a safe and convenient way of life to help our customers stay connected in the comfort of their homes. Going forward, we will be unveiling a bigger and better digital ecosystem and a more fun and convenient digital lifestyle experience.

Demand for our mobile broadband services continued to increase. During the period under review, we upgraded our 4G network in Harare and Chitungwiza and this increased the data browsing speeds by 1.5 times. This reflects our commitment to improve customer experience. 18 new base station sites were commissioned across the country to provide network connectivity in new suburbs that were previously un-serviced. We plan to commission over 215 new LTE sites country-wide to improve network quality and availability. In the next few months, we will start our 5G journey as we pivot to the next stage of our digital evolution.

An improved know your customer (KYC) platform that meets modern technological features such as biometric identification is under consideration. This will enhance compliance with subscriber registration legislation whilst safeguarding customers from identity fraud. Our customers will now be able to engage in more self-service activities as part of our digital drive. This upgrade will provide us with more resources allowing us to provide our services at the scale and sophistication that is demanded by our market. However, we are constrained by the shortage of foreign currency which could potentially impact our implementation timing. We have over 700 digital centres across the country offering digital support to our customers. At the centres, our customers experience digital services to enhance their appreciation of what we offer and how digital can change the way we live and work.

Load shedding has continued to strained our service delivery and increased our operational costs. We continue to upgrade our base stations to alternative power options, notably solar and diesel generators, as best as we can, within the constraints of foreign currency availability. The cost and availability of fuel adds an additional challenge where our backup power is reliant on generators. These alternate power options are intended to ensure a more reliable source of power. We are deliberately more to solar power in order to minimise our carbon footprint, in line with our sustainability objectives.

Financial review

The interim financial information presented is based on inflation adjusted financial statements which are the primary financial statements. Historical financial statements have been presented as supplementary information to meet other user requirements. The Directors caution users of the financial statements on the usefulness of these reported financial statements, in light of distortions that arise when reporting in a hyperinflationary economy.

In the period under review, revenue increased by 95% to ZW$ 29.6 billion, anchored by the increased contribution of data services. Data revenue grew by 136% and our voice services revenue increased by 92%. Aggressive cost management resulted in earnings before interest, taxation, depreciation and amortization (EBITDA) margin improving to 55% from 47% in the comparative period.

Exchange losses arising from foreign currency denominated obligations decreased from ZW$ 15.2 billion to ZW$ 481 million. These losses arise because of the movements in the exchange rate on the foreign currency auction system and the consequent impact on the value of foreign currency liabilities, as expressed in the reporting currency. Capital investments remained severely constrained at 3% of revenue against an industry benchmark of between 10% to 15% of revenue, on account of foreign currency unavailability. Our infrastructure requires continuous improvement in order to continue to provide a service at the quality and scale demanded by our customers. This has not been possible in the current environment, due to the unavailability of foreign currency.

The Company holds a stake in Liquid Telecommunications Jersey (“LTJ”) valued at US$ 145 million.


Following the offer made by the Company for the early redemption of debentures, at the interbank rate, 22.46% debentures were offered for early redemption by the holders. The Company remains with an obligation for 904 778 710 debentures which are due for redemption in April 2023. 50% of the debenture liability is due from Cassava Smartech Zimbabwe Limited.

Blocked funds

The company continues to pursue debt registration under the blocked funds framework through the Reserve Bank of Zimbabwe. The blocked funds framework was announced in 2018 to address the challenges that Companies faced in meeting their external obligations when the local currency was introduced.

Dividend declaration

The Company has declared an interim dividend of 60 ZW cents per share for the half year ended 31 August 2021.


The dividend will be paid per the following timelines:

  • Last date to trade cum dividend: Tuesday, 7 December 2021
  • Share trades ex-dividend: Wednesday, 8 December 2021
  • Record date: Friday, 10 December 2021
  • Payment date (on/about): Thursday, 16 December 2021

Corporate social responsibility

The impact of COVID-19 and resultant recurrent national lockdowns continue to demand the need to build sustainable ecosystems across our programmes to ensure communities are supported and can access education, health and services that bring sustainable livelihoods. During the period, we supported the national efforts to tackle the COVID-19 pandemic by running the “Fight on! Keep it up” national COVID-19 awareness campaign to bring to mind precautions to counter the effects of the prolonged pandemic. We continued to work closely with the Ministry of Health and Child Care to support their various Covid-19 initiatives to promote national health and safety.

Establishing sustainable partnerships formed a critical component of our programmes and saw Higherlife Foundation participating in education policy discussions with local legislators. This allowed Higherlife Foundation to play a catalytic role in the national strategy for education and garner public sector support for its long term programming activities.

The provision of sustainable livelihoods has been a key component of the Group’s social responsibility initiatives. Our initiatives continue to create opportunities for communities to venture into climate smart agriculture through a concept termed “Pfumvudza”, which is also a Government programme aimed at ensuring that climate shocks are mitigated in agricultural output.

In our Global Health Programme, we continued to support the work in responding to the maternal and neonatal health crisis through placing large-scale and high-tech critical maternity ward equipment as well as providing Emergency Obstetric and Neonatal Care (EmONC) training to eight maternity wards in Zimbabwe’s central and provincial hospitals.

The business also commissioned a base station site in Mt. Darwin under the POTRAZ Universal Services Fund (USF) programme. The business contributes 1.5% of its revenues to the Universal Services Fund, which aims to provide connectivity to underserviced communities.


The Group has entered a new phase on its digital transformation journey, with exciting new possibilities ahead. We remain focused on furthering the digital transformation of our products and services as we transform to a fully-fledged digital services provider (DSP). We are investing into artificial intelligence (AI), machine learning and gamification as we seek to better understand our customers’ needs and expectations. Our investment is not only in our systems and platforms but also in the human capital that will drive the business to the next stage of evolution in the digital transformation journey.


On behalf of the Board, I would like to extend my profound appreciation to our customers who continue to support our various businesses. I would also like to appreciate staff and our management teams for their continued passion and resilience. Our business partners remain supportive; we would like to express our appreciation to them. My gratitude also extends to my fellow Board members, without whose wise counsel, we would not be where we are today.

Dr J. Myers
Chairman of the Board
24 November 2021

2022 Half year financial results.pdf

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Econet Wireless Zimbabwe is a diversified telecommunications group, the largest enterprise of its kind in Zimbabwe.

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