Zimbabwe’s telecommunications sector closed 2025 with a clear message, the digital economy is no longer emerging, it is consolidating. The fourth quarter performance report by the Postal and Telecommunications Regulatory Authority of Zimbabwe reveals a sector experiencing structural transformation, where data has overtaken traditional services, infrastructure investment is accelerating, and competitive dynamics are sharpening. However, beneath this growth narrative lies a tension between expansion and sustainability, as rising costs and uneven market participation threaten long term balance.
The most defining shift is the continued migration from voice and SMS services toward data driven consumption. Mobile data traffic surged by 11.27% to 160.33 petabytes, while fixed internet traffic rose by 8.86%, reinforcing the dominance of internet based communication and content platforms. This transition is not merely technological but behavioural. Applications such as WhatsApp, YouTube, and Facebook now anchor digital usage, with video streaming and social media collectively driving the bulk of national data consumption. In contrast, SMS traffic declined by 3.49%, confirming the steady erosion of legacy communication channels.
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Book NowVoice services, while still relevant, are increasingly being reshaped by bundled offerings and hybrid usage patterns. Mobile voice traffic grew by 9.04%, largely driven by on net promotions and affordable calling packages. Yet this growth masks a deeper structural decline in traditional telephony. Fixed line voice traffic fell by 4.88%, illustrating how consumers are abandoning circuit switched systems in favour of internet based alternatives. The implication is clear, voice is no longer a standalone revenue pillar but a complementary service within broader data ecosystems.
Market structure remains highly concentrated, with Econet Wireless Zimbabwe consolidating its dominance across subscriptions, traffic, and infrastructure. The operator not only increased its subscriber base but also expanded its market share in voice and data segments. NetOne, while showing resilience in data growth, experienced marginal declines in voice traffic share, signalling competitive pressure. Telecel Zimbabwe continues to lag, with declines in subscribers, traffic, and infrastructure deployment, raising concerns about its long term viability in an increasingly capital intensive industry.
Infrastructure investment has emerged as both a catalyst for growth and a source of financial strain. Capital expenditure by mobile network operators more than doubled, rising by 112% to ZWG 1.08 billion, driven largely by aggressive deployment of LTE and 5G base stations. The addition of 47 new 5G sites, bringing the total to 366, signals Zimbabwe’s commitment to next generation connectivity. This expansion is critical for supporting data intensive applications and future technologies, including artificial intelligence and the Internet of Things. However, the rapid pace of investment is outstripping revenue growth, with operating costs rising faster than income. The sector’s cost to income ratio worsened to nearly 60%, highlighting mounting efficiency pressures.
The rise of alternative connectivity solutions is also reshaping competitive dynamics, particularly in the fixed internet segment. The rapid growth of Starlink Zimbabwe, which recorded a 42.76% increase in data traffic, underscores the disruptive potential of satellite broadband. Its expansion has eroded the market share of traditional fibre providers such as Liquid Intelligent Technologies, signalling a shift toward more flexible, decentralised connectivity models. This trend is particularly significant for rural and underserved areas, where traditional infrastructure deployment has been slower and more costly.
Despite these gains, not all segments are benefiting equally from digital transformation. The postal and courier sector continues to contract, with volumes declining by 19.09% and revenues falling by 2.3%. Rising operational costs and shrinking demand have pushed the cost to income ratio above 117%, indicating a sector under severe financial stress. This decline reflects broader global trends, where digital communication and e commerce logistics are redefining the role of traditional postal services.
The broader economic implication of these trends is a sector at a crossroads. On one hand, increasing internet penetration, now at 84.55%, and expanding broadband access point to a more connected and digitally active population. On the other, the sustainability of this growth depends on balancing investment with affordability and operational efficiency. The sharp rise in capital expenditure, coupled with declining average revenue per user in some segments, suggests that operators may face pressure to adjust pricing models or explore new revenue streams.
Looking ahead, the sector’s trajectory will likely be shaped by policy and innovation. The anticipated rollout of the national artificial intelligence strategy is expected to deepen demand for high speed connectivity and data services. At the same time, regulatory frameworks will need to address issues of market concentration, infrastructure sharing, and consumer affordability to ensure inclusive growth.
In essence, Zimbabwe’s telecommunications sector is no longer defined by connectivity alone but by its role as the backbone of a digital economy. The fourth quarter of 2025 confirms that the shift to a data centric ecosystem is not only underway but accelerating. The challenge now is ensuring that this transformation is sustainable, competitive, and broadly beneficial across all sectors of the economy.
