Mobile telecommunication operators invest over ZWL$26 billion in capital projects

THE country’s telecommunications sector continues to receive massive support with the latest statistics showing that close to ZWL$26 billion was invested in capital projects by mobile telecommunication firms in the second quarter of this year.

A Postal and Telecommunications Sector Performance Report for the second quarter of this year indicates that the mobile operators riding on an over 170% growth in revenues, devoted part of the income to long-term capital projects.

Some of the projects that accounted for capital spending include upgrading of base stations, investment in new machinery and equipment as well as infrastructure.

Economic experts say the investments indicate investor confidence in the capital-intensive but viable telecommunications industry.

“Of course, there are some challenges emanating from the high operating costs however, if these firms are also spending on capital projects, then it means that they are targeting long-term growth indicating their commitment to continue operating in the country,” said an investment analyst, Mr Tino Kashamba.

University of Zimbabwe Business School director, Professor Albert Makochekanwa said, “Any form of capital expenditure forms the basis of industrial growth, the fact that they are seeing it necessary to invest then it means they are in a position to unlock shareholder value and hedge against any form of instability in the near future.”

The report however reveals that the future viability of the mobile telecommunications sector depends on sustained stabilisation of the local currency exchange rate.

Takeaways from the report include a 3,2% rise in active fixed telecoms lines, a 0,7% drop in mobile subscriptions, an 11,6% rise in mobile internet and data traffic, as well as an over 240% increase in revenues generated by the postal and courier services.


Positive Eye News

Leave a Reply

Your email address will not be published. Required fields are marked *

Minister of Industry and Commerce Dr Sithembiso Nyoni (second from left) shares insights with Secretary for Industry and Commerce Dr Mavis Sibanda (centre) and National Foods chief executive officer Michael Lashbrook (right) during a tour of the manufacturing company on Wednesday.

NatFoods adequately stocked, but worried about El Niño

National Foods said it has enough raw materials including maize, soya bean, wheat, and traditional grains for the next six months, but expressed concerns about the El Niñoweather pattern which could negatively impact the 2023–24 agriculture season. NatFoods is one of Zimbabwe’s largest food manufacturers and produces a broad range of food commodities including maize […]

Read More
Mr Tommy Sithole

Zimpapers records 59pc revenue growth

ZIMBABWE’S biggest diversified media group, Zimbabwe Newspapers (1980) Limited’s revenue increased by 59 percent to $40,7 billion in the first six months of the year with all units posting improved revenues and registering 8,4 million visitors to the group’s websites. The group chairman, Mr Tommy Sithole said the media group will seek to capitalise on […]

Read More
Zimbabwe National Industrial Development

World Tourism Day marked amid boom

THE manufacturing sector is envisaged to register at least two percent and three percent growth rate per annum and sector investment respectively by 2030 on top of increased manufactured exports of 10 per annum, the new Zimbabwe National Industrial Development that is set to play a vital role in Zimbabwe’s pursuit of economic prosperity by […]

Read More