INTRODUCTION
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Zimbabwe's success in the Information Communication
Techonology (ICT) sector saw the country ranked 2nd on
the International Telecommunications Union (ITU)
survey as the fastest developing ICT nation after Ghana in
October 2012.
The Ministry of Information and Communication
Technology has a direct mandate over ICT infrastructure
and services while the Ministry of Media, Information
and Publicity oversees broadcasting and communication.
The regulator y authority is the Postal and
Telecommunications Regulatory Authority of Zimbabwe
(POTRAZ).
Private players in mobile phone service provision are
ECONET Wireless, Telecel Zimbabwe, Africom and
government owned NetOne.
The World Bank estimates that a 10% increase in
broadband penetration could raise the Gross Domestic
Product (GDP) by 1-2%, indicating the value of ICTs in
economic development.
MOBILE AND FIXED TELEPHONE
SERVICES
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ENABLING FACTORS FOR ICTs
ADOPTION
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Zimbabwe has a dedicated national ICT policy adopted in
2005 and that makes significant references to the
promotion of ICTs in all sectors of the economy.
The national ICT policy refers to:
o access of ICTs across gender, reflecting an interest in promoting
equal access.
o developing ICT infrastructure including a local industry.
o the establishment of a national ICT authority that will
promote policy coherence and collaboration, particularly within
government.
A vibrant civil society sector that promotes ICT for
development and education exists such as World Links
Zimbabwe.
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An indigenous oligopoly market structure exists in the
mobile service provision where there are four licensed
mobile operators with one dominating the market.
o Econet enjoys 78% of mobile service provision market
share; Africom, Telecel and Net One share the remainder.
o Net One is 100% owned by Government, but is negotiating
for a foreign strategic partner.
o Telecel is 60% owned by foreigners, with 40% shareholding
owned by an Indigenous Empowerment Group.
o Econet's shareholding structure is 54% indigenous.
According to POTRAZ, the number of mobile
subscribers has increased to 10,3 million from a
penetration rate of 7,7% in 2001 or 576 000
subscribers.
Econet is the largest mobile operator and has close to 7
100 000 subscribers as of September 2012, Telecel has 2
000 000 subscribers as of July 2012 and NetOne is now
the smallest mobile operator with 1 600 000 subscribers
while the sole fixed network, Telone currently has 337
881 subscribers.
At US$0.24/minute mobile and US$0.05/minute
landline, Zimbabwe probably offers the cheapest
communication services in the world.
Internet users are approximately 2,3 million; a figure
representing a penetration rate of 18% increase from
1,2 million in 2011.
Zimbabwe at 30% was ahead of the African average of
17% in internet penetration, and slightly below the
world's average of 32%.
The provision of fixed network services in this sector is
dominated by the state telephone company, Tel-One.
Indigenous investors are marginalized, largely
distributing products such as handsets and PABX
systems produced by foreign companies.
PIP Empowerment Factsheet 13
Information And
Communication
Technology Sector
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BROADCASTING AND PRINT MEDIA
SERVICES
16. The broadcasting sector is 100% owned by government
with two players; Zimbabwe Broadcasting Holdings
(ZBH) (Pvt) Ltd. and Transmedia Corporation both of
which are parastatals under the Ministry of Media,
Information and Publicity. These provide 20-25%
television and 30-35% radio coverage in the country.
17. Two new players in radio services; StarFM and ZiFM
commenced operations in 2012.
18. The Zimbabwe Postal services (ZIMPOST) is under
threat from the latest technological development in the
form of electronic mail, social networks, Instant
Messaging Services (IMS) and other technologies more
preferred by clients.
19. The print media is highly indigenized and liberalized with
many players such as News Day, Daily News, The
Standard other than the state owned Zimpapers,
publishers of The Herald, The Chronicle, the Sunday
Mail and Sunday News.
INTERNET PROVISION
20. Internet service provision is highly indigenized with 11
major players.
21. There are three main internet access companies namely
Ecoweb (100% indigenously owned), Telone (100%
owned by Government) and Telecontract which is owned
by an indigenous entrepreneur.
22. In 2010 there were 29 Internet Service Providers (ISPs)
operating in the country.
23. Out of the 29 registered ISPs, 28% are owned by
indigenous entrepreneurs, 45% non-indigenous owned,
7% foreign owned and 20% owned by indigenous public
institutions. The total indigenous shareholding in ISPs is
48%.
24. The advent of mobile phone technology has propelled
indigenous investors into the forefront.
COURIER SERVICES
25. The domestic courier service is dominated by indigenous
public enterprises. These include Zimpost (100% owned
by Government), Mailnet (100% owned by Zimpost),
Megapost (100% owned by Zimpost) and SwiftUnifreight Ltd T/A Fedex (100% foreign owned).
26. Courier international is dominated by foreign owned
enterprises, Deutsche Post World Net-Federal Republic
of German-DHL, Fedex and United Postal Services
(UPS).
CHALLENGES IN THE ICT SECTOR
27. The sector involves fast changing technologies and is
capital intensive e.g. it costs between US$80 000 to US$250
000 to construct a base station.
28. There are no capital markets in the country and the
environment is not conducive to attract FDI.
29. Low levels of ICTs penetration at 50%, with a digital
divide between rural and urban areas, gender, age groups
and other social groups.
30. The telecommunication industry is failing to meet the
demand as dictated by the changes in demographic needs
and changing socio-dynamics.
31. High overheads due to erratic electricity supply; for
Econet, 72% of its network is under back-up power in the
form of generators at a cost of US$15 million per year.
32. ICT legislation is lagging behind particularly in terms of
regulating the importation of ICT hardware, resulting in
the importation of sub standard ICT hardware into the
country.
33. Inadequate infrastructure to support the availability of
broadband at affordable prices.
ECONOMIC EMPOWERMENT STRATEGIES
34. Promote and encourage infrastructure sharing and
broadening indigenous participation in the ICT sector.
35. Promote awareness and advocacy for ICT literacy
particularly for disadvantaged groups.
36. Creation of techno-parks to incubate particularly new
indigenous players in ICT.
37. Facilitate the formation of community radio stations such
Ntepe in Gwanda and Radio Dialogue in Bulawayo.
38. Support local software and other ICT products developers
through market –mediated incentives.
39. Facilitate access to funding by indigenous players to startup ICT businesses
40. One ministry should champion ICT regulation in the
country.
41. ICT connectivity should be mainstreamed in land use
planning.
42. Provide opportunities for the youth in hardcore ICT
skilling.
43. Postal services innovation and partnership between
ZIMPOST and small players including Employee Share
Ownership Programmes (ESOPs).
This factsheet is one of 16 sector-specific empowerment factsheets produced by Ruzivo Trust under the Policy
Influencing Project (PIP). Ruzivo Trust extends its appreciation to stakeholders who provided input into the
compilation of the factsheets.
Ruzivo Trust, 28 Greendale Avenue, Greendale; P.O. Box MP167, Mt Pleasant, Harare, Zimbabwe
Website: www.ruzivo.co.zw Email: [email protected]
Office numbers: +263 773 853 641 / +263 773 855 554