Econet completes network upgrade, poised for growth
ECONET Wireless Zimbabwe has announced the completion of its network infrastructure modernisation programme, following the successful upgrade of its core network in the second-half of the financial year ending February 28, 2025.
The group, in its year to February 2025 financial statements, said the modernisation programme had strategically positioned it to offer new, competitive and personalised services that underpin the digital strategy of the business.
Group chairman, Dr James Myers, in a statement accompanying the FY2025 financial results, said base station deployment efforts continued with the commissioning of 77 new sites, the modernisation of 546 radio access sites and the upgrading of 365 microwave access links.
In addition, he said 60 5G sites deployed nationwide in the last quarter of the financial year strengthened the group’s capabilities.
“The additional sites will ensure fast and seamless connectivity for homes and businesses while providing enhanced quality of service for our mobile broadband customers,” he said.
He added, “To bring connectivity to underserved communities within the country, we deployed 10 lightweight, cost-effective base stations designed to provide mobile network coverage in remote rural areas.”
Dr Myers also highlighted that the group continues to invest in power upgrades, augmenting the national grid’s power capabilities to ensure a reliable and efficient energy supply.
“These strategic investments enhance our operational resilience, support growing demand and contribute to the overall stability of the national grid.
“In addition, we implemented power monitoring systems to oversee rectifiers and regulate battery performance at site level. These deployments are crucial to ensuring power autonomy for our batteries and power efficiency,” he said.
In terms of segmental performance, the Mobile Network Operations (MNO) segment recorded year-on-year growth in data and voice traffic of 36 percent and 23 percent respectively.
Dr Myers said the growth was enabled by the modernised network and the ability to innovate and offer services that address the evolving needs of the group’s customers.
“Our earnings before interest, taxation, depreciation and amortisation (EBITDA) margin softened to 47 percent from 48 percent.
“As we accelerate our digitisation journey, we are adopting AI into our processes to enhance operational efficiencies and drive cost productivity,” he said.
Dr Myers noted that the improved revenue performance enabled the business to continue investing in its network infrastructure, a catalyst to drive revenue growth and data usage, which is forecast to continue on an upward trajectory in line with global trends.
The capital expenditure for the segment in the year under review was 16 percent of revenue against a prior-year comparative of 17 percent.
In financial technology (Fintech), the mobile money business EcoCash recorded growth of 21 percent and 210 percent in transaction volumes and values, respectively, anchored by customer and wallet funding increases.
Dr Myers said EcoCash continued to actively drive initiatives to increase cash-in transactions and international remittance receipts.
“Efforts to onboard more payment partners are ongoing, as the business aims to establish a global payment platform that prioritises convenience and value for customers,” he said.
During the year under review, the group’s insurance businesses, Econet Insurance (Moovah), EcoSure and Maisha Health, achieved 35 percent year-on-year revenue growth.
The life insurance business recorded 51 percent year-on-year growth in revenue as it continues to offer digital bundled products for wider customer reach.
Dr Myers said growth in revenue for the short-term insurance business against the prior year was driven largely by new business acquisitions and endorsements, which saw a 15 percent increase in motor and non-motor customers.
Looking ahead, Dr Myers said the group will leverage innovation and deepening AI infusion into group operations to enhance operational and cost efficiencies that will position the group for growth.
The group will also diversify its product and service offering and drive revenue growth whilst protecting margins.
Dr Myers also noted that the group will continue to make investments in digital transformation, embracing new technologies and actively pursuing strategic opportunities to enhance and complement the product portfolio.
“By harnessing the power of AI, we aim to create seamless experiences for our customers across all business segments,” he said.
In terms of segmental performance, the Mobile Network Operations (MNO) segment recorded year-on-year growth in data and voice traffic of 36 percent and 23 percent respectively.
Dr Myers said the growth was enabled by the modernised network and the ability to innovate and offer services that address the evolving needs of the group’s customers.
“Our earnings before interest, taxation, depreciation and amortisation (EBITDA) margin softened to 47 percent from 48 percent.
“As we accelerate our digitisation journey, we are adopting AI into our processes to enhance operational efficiencies and drive cost productivity,” he said.
Dr Myers noted that the improved revenue performance enabled the business to continue investing in its network infrastructure, a catalyst to drive revenue growth and data usage, which is forecast to continue on an upward trajectory in line with global trends.
The capital expenditure for the segment in the year under review was 16 percent of revenue against a prior-year comparative of 17 percent.
In financial technology (Fintech), the mobile money business EcoCash recorded growth of 21 percent and 210 percent in transaction volumes and values, respectively, anchored by customer and wallet funding increases.
Dr Myers said EcoCash continued to actively drive initiatives to increase cash-in transactions and international remittance receipts.
“Efforts to onboard more payment partners are ongoing, as the business aims to establish a global payment platform that prioritises convenience and value for customers,” he said.
During the year under review, the group’s insurance businesses, Econet Insurance (Moovah), EcoSure, and Maisha Health, achieved 35 percent year-on-year revenue growth. The life insurance business recorded 51 percent year-on-year growth in revenue as it continues to offer digital bundled products for wider customer reach.
Dr Myers said growth in revenue for the short-term insurance business against the prior year was driven largely by new business acquisitions and endorsements, which saw a 15 percent increase in motor and non-motor customers.
Looking ahead, Dr Myers said the group will leverage innovation and deepening AI infusion into group operations to enhance operational and cost efficiencies that will position the group for growth.
The group will also diversify its product and service offering and drive revenue growth whilst protecting margins.
Dr Myers also noted that the group will continue to make investments in digital transformation, embracing new technologies and actively pursuing strategic opportunities to enhance and complement the product portfolio.
“By harnessing the power of AI, we aim to create seamless experiences for our customers across all business segments,” he said.-herald
