Econet Invests In Digital Future As Data Traffic Grows 36%

Econet Wireless Zimbabwe has strengthened its mobile network infrastructure and expanded rural coverage.

This was revealed in a statement accompanying the company’s short-form financial announcement for the year ended 29 February 2025, by Econet board chairman James Myers.

The telecoms giant reported strategic progress in its digital transformation journey, underpinned by increased investments in network upgrades and improved service delivery.

A key highlight of the year, according to the statement released on 30 May 2025, was the successful completion of Econet’s core network upgrade in the second half of the financial year.

This upgrade has positioned the company to offer more competitive, personalised, and digitally aligned services.

Econet’s base station expansion drive remained robust, with 77 new sites commissioned across the country.

The company also modernised 546 radio access sites and upgraded 365 microwave access links.

Of particular note was the deployment of 60 new 5G sites nationwide in the final quarter of the year — a move expected to enhance broadband speeds, reduce latency, and improve overall service quality for both households and businesses.

Demonstrating a commitment to digital inclusion, Econet deployed 10 lightweight, cost-effective base stations in remote rural communities.

These installations aim to extend mobile network coverage to underserved areas, helping to bridge the digital divide in Zimbabwe.

To ensure reliability and efficiency in network operations, Econet continued investing in power infrastructure, bolstering national grid capabilities to support its growing energy needs.

In the mobile network operations segment, Econet reported strong performance with year-on-year growth of 36% in data traffic and 23% in voice traffic.

This was attributed to the company’s ongoing network modernisation efforts and a focus on innovation that meets the evolving demands of its customer base.

However, Econet’s earnings before interest, taxation, depreciation and amortisation (EBITDA) margin dipped slightly to 47% from 48% in the previous year.

The company noted this softening was expected as it accelerates its digitisation efforts, including the adoption of artificial intelligence to boost operational efficiency and manage costs more effectively.

The improved revenue performance during the year allowed Econet to maintain high levels of investment in its network infrastructure.

Capital expenditure for the year stood at 16% of revenue, marginally down from 17% in the prior year.

Econet declared a final dividend of 0.73 US cents per share for the year ended 28 February 2025. This brought total dividends for the year to 1.76 US cents per share, providing a positive return to shareholders amid the continued transformation of the business.

EcoCash, the company’s mobile money platform, recorded a 21% increase in transaction volumes and an impressive 210% growth in transaction values.

This performance was underpinned by a surge in customer activity and improved wallet funding.

Econet’s insurance operations, which include Econet Insurance (Moovah), EcoSure, and Maisha Health, also registered strong results, with a combined 35% year-on-year revenue growth.

The life insurance segment led the charge, posting a 51% revenue increase compared to the previous year. The growth was driven by continued innovation in digital bundled products, which have expanded market reach and made insurance more accessible to customers.

Meanwhile, the short-term insurance business reported solid performance, with revenue growth largely fuelled by new business acquisitions and policy endorsements. 

This included a 15% increase in both motor and non-motor insurance clients, highlighting rising demand for flexible, tech-enabled insurance solutions.