By Jonathan Mbiriyamveka
Harare – Mobile network operators in Zimbabwe recorded a 6.33% increase in revenue during the fourth quarter of 2025, but a sharper rise in operating costs is raising questions about the industry’s financial efficiency, according to a new report from POTRAZ.
The three major operators — Econet, NetOne, and Telecel — generated a combined ZWG 7.74 billion in revenue between October and December 2025, up from ZWG 7.27 billion in the previous quarter.
However, aggregate operating costs jumped by 11.52%, from ZWG 4.16 billion to ZWG 4.64 billion over the same period.
As a result, the sector’s cost-to-income ratio worsened by 2.73 percentage points, moving from 57.22% to 59.95%.
“This deterioration in operational efficiency was driven primarily by rapid operating costs increase that exceeded revenue growth,” POTRAZ stated in the report.
The widening gap between revenue growth and cost growth suggests that operators are struggling to translate higher earnings into improved profitability. While average revenue per user (ARPU) increased modestly by 4.13% to ZWG 460.99 per quarter, this was outpaced by cost inflation.
Capital expenditure told a different story. Total investment by mobile operators more than doubled, rising 112% from ZWG 508.92 million in Q3 to ZWG 1.08 billion in Q4.
The spending was directed largely toward next-generation infrastructure, including the deployment of 47 additional 5G base stations and 167 new LTE base stations.
“The significant increase in deployment of next generation network infrastructure will go a long way in enhancing connectivity, quality of service and network speeds,” the report noted.
However, analysts warn that heavy capital spending combined with rising operational costs could put pressure on margins, especially if revenue growth continues to lag.
“Operators are caught in a difficult position,” said a Harare-based financial analyst.
“They need to invest in 4G and 5G to remain competitive, especially with Starlink entering the market. But the cost of doing business in Zimbabwe — from power to fuel to foreign currency-denominated expenses — is rising faster than what they can recover from subscribers.”
Mobile internet and data services remained the largest revenue contributor, accounting for 50.75% of total operator income, driven by growing usage of platforms like WhatsApp, YouTube, and TikTok.
POTRAZ did not provide operator-specific profitability figures, but the aggregate data suggests that unless operators can better control costs or raise tariffs, the efficiency slide may continue into 2026.
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