Operational expenses push mobile data costs in Zimbabwe

Headline tariffs by the Postal and Telecommunication Regulatory Authority of Zimbabwe (POTRAZ) are competitive in the region.

The headline tariffs represent the maximum tariffs permitted by governments or national regulators. In the diagram below, Zimbabwe is shown to be considerably the least expensive after Botswana and on par with Malawi.

However one may wonder why our data costs appear to be higher than those in these countries. This can be attributed to the rigorous competition where these local service providers can offer their data at the lowest rates, way below the permitted maximum headline tariffs while remaining profitable.

The economic conditions and cost of doing business in these countries make it viable and sustainable for them to maintain such pricing levels.

Furthermore, in countries like South Africa, the connection is backhauled using pre-existing fiber infrastructure due to their proximity to the sea. In contrast, Zimbabwe is a landlocked country.

The expenses incurred in trenching through South Africa significantly contribute to the overall data costs. Additionally, the instability of the RTGS currency complicates the ability to generate profits from such investments. The inconsistent electricity supply further escalates costs, as fuel is frequently utilized to power the disconnected base stations, alongside excessive taxation burdens.