Zimbabwe’s Telecom Sector Posts Growth Amid Rising Operating Costs

More Data, Less Talk…

By Shingirai Vambe

Zimbabwe’s telecommunications sector closed 2025 on a note of measured expansion and structural transition, as reflected in the fourth quarter performance report released by Postal and Telecommunications Regulatory Authority of Zimbabwe. The data paints a picture of an industry steadily shifting from traditional voice and SMS services toward a data-driven digital ecosystem, underpinned by infrastructure investment, rising connectivity, and evolving consumer behaviour.

At the heart of the sector’s performance was continued growth in mobile connectivity. Active mobile subscriptions rose by just over two percent, reaching 16.7 million, pushing mobile penetration beyond the 100 percent mark to 107.04 percent.

This indicates a maturing market where multiple SIM ownership remains common. Market leader Econet Wireless Zimbabwe maintained its dominance, expanding both its subscriber base and market share, while NetOne recorded modest growth. Telecel Zimbabwe, however, continued to lose ground, reflecting ongoing operational and competitive challenges.

Voice traffic experienced a notable resurgence during the quarter, rising by over nine percent to exceed five billion minutes. This growth was largely driven by increased on-net and inter-network calls, supported by bundled offerings that continue to shape user consumption patterns. At the same time, international voice traffic declined, suggesting a shift toward internet-based communication platforms and reduced reliance on traditional cross-border telephony.

In contrast, SMS usage continued its downward trajectory, declining by 3.49 percent. The drop underscores a broader global trend in which messaging services are increasingly being replaced by data-based applications such as WhatsApp and other social media platforms.

The most significant story of the quarter, however, lies in the explosive growth of data consumption. Mobile internet traffic surged by 11.27 percent, reaching over 160 petabytes, while fixed internet traffic also recorded strong growth of 8.86 percent.

This expansion reflects a deepening digital culture in Zimbabwe, driven by video streaming, social media engagement, and the proliferation of data-intensive applications. Platforms such as YouTube, Facebook, and WhatsApp remain key drivers, while emerging consumption patterns linked to TikTok, Netflix, and Instagram are accelerating bandwidth demand.

Internet penetration rose to 84.55 percent, with broadband penetration also increasing, highlighting improved access and affordability. Infrastructure development played a critical role in enabling this growth. The sector saw the deployment of 47 additional 5G base stations, bringing the national total to 366, alongside significant expansion in LTE and 3G networks. These investments are expected to enhance network quality, speed, and coverage, particularly in underserved areas.

Mobile network operators recorded revenue growth of 6.33 percent, reaching ZWG 7.74 billion. However, this was offset by a sharper increase in operating costs, which rose by 11.52 percent.

The widening gap between revenue and costs pushed the sector’s cost-to-income ratio higher, signaling growing pressure on profitability. Encouragingly, capital expenditure more than doubled, reflecting strong reinvestment into infrastructure and future capacity.

Beyond mobile networks, the fixed telephony segment showed marginal growth in subscriptions but continued to experience declining voice traffic, reinforcing the sector-wide migration from voice to data services. Fixed VoIP subscriptions increased modestly, with Liquid Intelligent Technologies maintaining a commanding lead in that space.

The internet access provider (IAP) market also recorded steady gains, with revenue increasing slightly while operating costs declined, suggesting improved efficiency. Notably, Starlink made significant inroads, driving a sharp rise in VSAT subscriptions and capturing a growing share of fixed internet traffic. Its rapid expansion signals increasing competition in the broadband space and a shift toward satellite-based connectivity solutions.

International bandwidth capacity also expanded, both in terms of equipped and utilized capacity, reflecting Zimbabwe’s deeper integration into the global digital economy. Increased usage levels point to rising demand for international content, cloud services, and cross-border digital interactions.

In contrast to the growth seen in telecommunications, the postal and courier sector continued to contract. Volumes declined sharply by over 19 percent, while revenues dipped and operating costs rose. The closure of several courier outlets further reflects the structural challenges facing traditional mail services in an increasingly digital world.

The fourth quarter of 2025 confirms a decisive transformation within Zimbabwe’s telecommunications landscape.

The sector is rapidly evolving into a data-centric ecosystem, driven by infrastructure expansion, technological innovation, and changing consumer habits. While challenges remain, particularly around cost pressures and uneven operator performance, the trajectory points toward a more connected, digitally enabled economy.

Looking ahead, the rollout of 5G networks, continued fibre expansion, and the implementation of the national Artificial Intelligence strategy are expected to further accelerate this transformation.

The sector’s ability to balance investment, affordability, and innovation will ultimately determine how effectively it supports Zimbabwe’s broader ambitions of becoming a competitive digital economy by 2030, living no one and no place behind.