Sub-economic tariffs, forex shortages hamper Econet Wireless expansion project

Econet Wireless Zimbabwe plans to invest US$135 million into its network over the coming year is being held back by sub-economic tariffs and foreign currency shortages.

The company says this capital expenditure will require a supportive pricing regime given the inflation trends and currency depreciation.

Econet Wireless Zimbabwe Limited is the largest mobile telecommunications, technology and digital solutions company in Zimbabwe.

The country’s economic environment has been a thorn in the flesh for many companies due to pricing regime amid a depreciating local currency.

The Zimdollar is trading badly against major convertible currencies such as the US dollar, amid calls for full dollarisation.

President Emmerson Dambudzo Mnangagwa is on record saying his administration will not fully dollarise or dump the country’s local currency.

But his spokesperson George Charamba says the country’s economy is informally dollarise, adding that around 80 percent of transactions are being conducted in US dollars.

Zwnews