Econet Wireless Zimbabwe Limited has unveiled its strategic plans to revolutionise the telecommunications industry in Zimbabwe, with a focus on network modernisation, digital innovation and financial technology integration, as revealed in its latest trading update for the first quarter ended May 31, 2024.
According to the update, the company has acquired Financial Technology (FinTech) businesses from EcoCash Holdings Zimbabwe Limited, excluding Steward Bank, and is in the process of integrating them.
This move is expected to unlock value for stakeholders and result in synergies, streamlined processes and propel the business forward.
“We are excited about the integration of the mobile network operations and financial technology businesses, which will result in synergies being realised, streamlining of processes and propelling the business forward,” said Tatenda Ngowe, Group Company Secretary.
In the mobile network operations segment, the company has prioritised network modernisation to enhance service delivery, commissioning over 30 new sites across the country during the quarter.
This, according to the company, has improved network performance and quality of service. The company is also focused on increasing its 5G penetration and has plans to commission additional 5G sites by the end of the financial year.
The update also highlights the growth in data and voice usage, with data usage growing by 74% and voice usage growing by 46% relative to the prior year. This has resulted in data and voice revenue contributing 42% and 38% respectively of the MNO revenue.
In the FinTech segment, the company has seen a strong performance driven by sustained growth of the active customer base and increasing usage of digital financial services.
The mobile money business has experienced consistent growth in its active customer base, with active customers growing by 189% compared to the first quarter of the prior year.
“The synergies between our digital insurance platforms and mobile money ecosystem continue to drive increased adoption and cross-selling opportunities,” said Ngowe.
The company has also declared and paid an interim dividend of 0.26 US cents per share for the quarter ended May 31, 2024.
Looking ahead, the company expects the increasing demand for data and digital services to continue to reshape its mobile network operations and capital investments.
“We are planning to leverage on the reintegration of the financial technology businesses to drive innovation, as we respond to the evolving needs of our customers,” said Ngowe.
