By Aldridge Dzvene | Positive Eye News
In a telecommunications landscape where liquidity challenges and limited access to capital have become the norm, Zimbabwe’s fixed telecoms giant, TelOne, has shown remarkable resilience by forging ahead with its infrastructure development agenda through internally generated resources. A wholly-owned subsidiary of the Mutapa Investment Fund, TelOne is weathering significant financial headwinds as it works to upgrade its national digital backbone.
Despite the absence of equity and loan funding, the state-owned enterprise has managed to sustain key infrastructure projects, maintaining both strategic relevance and market presence. According to TelOne chief executive, Engineer Lawrence Nkala, the company is relentlessly exploring alternative funding avenues to support infrastructure improvements and network upgrades. His remarks came during the company’s 2024 Annual General Meeting held this week.
TelOne’s financial position has been undermined by delays in receivables from critical stakeholders, with some key business partners failing to meet their financial obligations. These arrears have severely limited the company’s working capital, curtailing its ability to undertake large capital-intensive projects. However, rather than stall progress, the firm has turned inward, reinvesting revenues and prioritising efficiency to continue modernising its network.
One of the most notable achievements in 2024 was the commissioning of 29 new LTE base stations across the country. This expansion significantly enhanced the LTE network’s coverage and capacity, especially in areas previously underserved. At a time when digital connectivity is a key enabler for national development and inclusion, these installations represent more than just towers, they symbolise digital opportunity.
TelOne also made strides in connecting 12,000 homes to its Fibre-to-the-Home (FTTH) network. The high-speed internet rollout is not only critical for households accessing education, e-commerce, and health services but also represents a structural shift toward a digitally enabled society. This is particularly vital in a post-pandemic world where digital services define economic competitiveness.
In a further nod to its transformation drive, the company completed a state-of-the-art 305-square-metre Omni Contact Centre with 102 seats, designed to bolster customer service delivery. The centre reflects TelOne’s commitment to digital-first customer engagement, reducing operational inefficiencies, and enhancing responsiveness.
Operational upgrades have also been made across TelOne’s core systems and digital platforms. These include backend technological investments aimed at improving agility in responding to market shifts and enhancing service quality in real-time, key factors in retaining customer trust.
While grappling with financial constraints, TelOne’s revenue performance tells a story of determined organic growth. The company posted a 20 percent increase in inflation-adjusted revenue to ZiG2 billion in 2024, driven by upward performance in its Wholesale, Enterprise, and Data Centre segments.
The Wholesale segment alone recorded an astounding 102 percent growth in sales, demonstrating that TelOne is successfully positioning itself as a key infrastructure provider to other telecoms players and ISPs. The Enterprise segment, which grew by 26 percent, confirms TelOne’s growing influence in delivering tailored digital services to corporate clients. The Data Centre and Cloud Solutions business posted a 23 percent increase in rack space and cloud storage demand, signifying growing confidence in TelOne’s tech solutions.
In the residential space, the Home Broadband segment grew modestly, with subscribers reaching 147,876 and contributing an average of US$12 per user monthly. This steady growth in subscriptions indicates consumer confidence despite economic headwinds.
However, TelOne is not immune to broader economic challenges. The company’s operating costs rose significantly to ZiG1.4 billion, up from ZiG986 million in 2023. These costs were driven by inflationary pressures, increased network repairs due to vandalism, and asset depreciation following a revaluation exercise. These pressures underline the harsh realities of operating a national telecoms utility in an environment marked by economic volatility and limited foreign investment inflows.
Despite this, TelOne managed to record Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of ZiG416 million in 2024, a testament to the firm’s internal strength and sound operational strategy.
The overall narrative emerging from TelOne’s 2024 performance is one of endurance, innovation, and cautious optimism. While funding remains a challenge, the company’s ability to deliver infrastructure improvements using its own earnings reflects both disciplined management and a strong commitment to Zimbabwe’s digital transformation agenda.
Looking ahead, the path to long-term sustainability may lie in unlocking capital through strategic partnerships, recapitalisation, or potential private-sector collaborations under the Mutapa Investment Fund framework. Yet even as these possibilities are explored, TelOne’s self-financed progress affirms its role as a backbone of connectivity in Zimbabwe, a role it is playing with quiet resolve and a clear vision.
