Zimbabwe stands out in Sub-Saharan Africa for its relatively lower average monthly broadband costs compared to many of its neighbours. According to a comprehensive study by Cable.co.uk, Zimbabwe’s average monthly broadband cost sits at USD 9.64, placing it 11th in affordability among 44 countries in the region. While this may seem promising compared to nations like Burundi and the Democratic Republic of Congo, where prices skyrocket to $304.57 and $170.97, respectively, the cost is still high for many Zimbabweans, where broadband is increasingly seen as essential for educational, economic, and social participation.

Zimbabwe’s Relative Position in Sub-Saharan Africa

Among Sub-Saharan African nations, where the average monthly internet cost is approximately USD 62.66, Zimbabwe appears more affordable, with packages ranging from as low as USD 0.87 to as high as USD 1,257.69. Despite this variability, most Zimbabweans feel the impact of the high average package price for mobile data relative to the country's income levels. Although it performs relatively well in the region’s rankings, internet affordability in Zimbabwe still poses challenges for low-income families who rely heavily on mobile data to stay connected.

Why Data Costs Remain High in Zimbabwe

Zimbabwe’s mobile data costs stem from multiple factors, some unique to the country and others shared across the region:

1. Geographic and Population Challenges
   Zimbabwe covers a large area with a population density that is lower than many other African nations, making it challenging and costly for telecom providers to establish extensive infrastructure. Connecting rural areas often requires substantial investment in fibre networks or other forms of broadband technology, which raises operational costs. As a result, these costs are passed on to consumers, who end up paying more for their data packages.

2. Market Dynamics and Oligopolistic Competition
   Zimbabwe’s telecom industry is dominated by a few key players, notably Econet, which holds a substantial share of the market. This oligopoly restricts competition, allowing dominant players to set higher prices without the pressure of market-driven competition. In a more competitive environment, telecom providers would be compelled to lower prices to attract customers, but the lack of competition in Zimbabwe reduces incentives for innovation or price reduction.

3. Economic Instability and Inflation
   Zimbabwe has faced economic turbulence, with inflation and currency fluctuations directly impacting operational costs for telecom companies. The costs of importing equipment and maintaining infrastructure often rise due to currency depreciation, which telecom companies counterbalance by adjusting package prices. For consumers, this economic instability translates into less predictable and often increasing mobile data costs.

The Social and Economic Impact of High Data Prices

The high cost of data affects Zimbabweans on multiple levels. The necessity of internet access for both personal and professional life has become indisputable, and for many Zimbabweans, data is the only gateway to the digital world. This has significant implications:

• Educational Barriers: Access to affordable mobile data is critical for students and educators, who increasingly rely on online resources and digital classrooms. High data costs make remote learning unaffordable for many families, limiting students' educational opportunities and deepening the digital divide.

• Economic and Business Limitations: For small businesses, digital platforms are vital for marketing and connecting with customers. Many Zimbabwean entrepreneurs use social media and other online tools to reach clients, but high data costs make it challenging to sustain these efforts, thus restricting business growth.

• Social Inequality: The affordability of mobile data directly correlates with social inequality. Wealthier Zimbabweans can afford to stay connected, while those with limited means may face challenges in accessing the same digital resources, exacerbating socio-economic divides within the country.

The Case for Increased Market Competition

One potential solution to Zimbabwe’s high data costs is to introduce more competition into the telecom market. Currently, the market is dominated by Econet and a few other players, creating an oligopolistic structure where companies are less incentivized to lower prices or innovate. In countries with more robust competition among telecom providers, such as India, increased competition has led to a dramatic reduction in mobile data prices, providing more people with affordable internet access.

Allowing more service providers to enter the Zimbabwean market could yield similar results. With more players competing for customers, telecom providers would need to reduce prices and improve service offerings to attract users. This competitive environment would benefit consumers and make the internet more accessible across income levels, boosting social and economic participation. Additionally, increased competition could drive companies to invest in infrastructure and expand coverage, enhancing service quality and accessibility for people in remote areas.

Challenges in Increasing Competition

While market liberalization offers a promising solution, it is not without challenges. High entry costs, regulatory requirements, and the need for significant infrastructure investments make it difficult for new companies to enter Zimbabwe’s telecom market. Additionally, government policies and regulations around licensing and operation fees may also pose barriers. To foster competition, policymakers would need to streamline the licensing process, reduce regulatory hurdles, and possibly offer incentives to new entrants willing to invest in infrastructure development.

A Way Forward for Zimbabwe’s Digital Future

The high cost of mobile data in Zimbabwe is a complex issue shaped by geography, market structure, and economic instability. Although Zimbabwe ranks relatively well within Sub-Saharan Africa, with an average data cost of USD 9.64, the expense remains high for most citizens. To address this, increasing competition in the telecom sector could drive down prices and make mobile data more affordable. By lowering regulatory barriers and encouraging new market entrants, Zimbabwe could create a more competitive landscape that ultimately benefits consumers.

Affordable internet access is crucial for Zimbabwe to keep pace with global digital advancements. A more competitive telecom market could pave the way for lower prices, better service quality, and broader connectivity, making the digital future accessible to all Zimbabweans and fostering a more inclusive, equitable society.

OUR SPONSOR