Forex challenges hamper Econet’s US$135 million capex programme

ECONET Wireless Zimbabwe says its US$135 million capital expenditure programme spread over the next 12 months has been derailed by lack of foreign currency to pay suppliers.

In a trading update for the quarter ended May 31, 2023, the country’s largest mobile network operator said it continues to witness an increase in the demand for its services with the usage of voice and data for the quarter under review growing by 30 percent and 31 percent respectively.

“This increase in volumes requires further investment into the platforms and systems that drive network capacity and capabilities.

“Our capital expenditure programme which continues to be constrained by lack of availability of foreign currency to pay our suppliers over the next 12 months is expected to be about US$135 million.

“This capital expenditure will require a supportive pricing regime given the inflation trends and currency depreciation,” said the company.

Econet said it is in the process of implementing a virtualised core network that will replace the current core network system.

“The core network is the nerve centre of all the complex network activities that take place in providing the services we provide to our customers.

“This upgrade will enable the company to launch additional products and services and implement faster product changes to enhance the customer experience.

“We also plan to upgrade our radio network in Harare, Bulawayo and Manicaland by the end of the 2023 calendar year.”

For the period under review, Econet upgraded 30 percent and 70 percent of its Harare and Bulawayo base station sites respectively.

As a result of the upgrades, the mobile network operator said they have seen an increase in the speed and volume of data consumed by its customers.

“We have started deploying Business Support Systems (BSS) in a phased manner starting with a new digital Know Your Customer (KYC) platform.

“The platform leverages digital identification, distribution, and other partner management services.

“This service enables convenient access for our customers to our digital ecosystem and our partner services as well,” said Econet.-ebusinessweekly