Page 166 - SAMENA Trends - June-July 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

The government of Zimbabwe has pulled back from a in this area, but the ones that are operating now have
threat to shut down all mobile money services in the made significant investment into this service. The
country as it looks to target ‘malpractices, criminality investment required in this sector is significant and
and economic sabotage perpetrated by the wolves some fail to attract meaningful investment to roll out,”
in sheep skins amongst our population’. Following he said. Mr. Muzhuzha, however, could not be drawn
Zimbabwe an initial statement from Information Secretary Nick into disclosing the names of the affected companies

Mangwana at the weekend which caused uproar for client confidentiality reasons. According to a Budd
among the millions of mobile money users, the Reserve Comm report on Zimbabwe- Telecoms, Mobile and
Bank of Zimbabwe (RBZ) quickly moved to clarify the Broadband Statistics and Analyses, limitations in
government’s position. Rather than targeting all users, international bandwidth for the country – landlocked –
mobile money agents and bulk payer lines are being has for many years held back development in Internet
closed, with merchant-to-merchant transactions also and broadband sectors, but this has changed since
suspended, but other forms of transaction, including fiber optic links to several submarine cables were
payments for utility bills, can still be carried out. As established via neighboring countries. The report
part of its temporary measures to combat fraud and further notes that the expansion of 3G and LTE-based
corruption, the government has also banned trading broadband services have meant that more than half
on the Zimbabwe Stock Exchange (ZSE). According to of the population can now access the Internet. With
industry regulator POTRAZ, the total number of active the outbreak of the Covid-19 pandemic and its effects
mobile money subscriptions grew by 2% in the final on businesses, the sector will not be spared at both
three months of 2019 to reach 7,334,639 as of end- operator and consumer level. For an economy that
December, with Econet’s EcoCash service accounting was already facing challenges prior to the pandemic,
for 93% of all users. (June 29, 2020) commsupdate.com it is anticipated network service providers will have
difficulties maintaining and upgrading existing
The Postal and Telecommunications Regulatory infrastructure due to foreign currency shortages, while
Authority of Zimbabwe (POTRAZ), says it cancelled on the part of consumers side, disposable incomes will
nearly 10 licenses for Internet access providers who continue to dwindle. However, Potraz says it is working
failed to roll out their businesses. Speaking during on a regulatory framework that among other issues,
the third edition of an online economic development will enhance interoperability, which will in turn make
outlook seminar hosted by Global Renaissance telecommunications services affordable to consumers
Investments (GRI), Potraz Technical Services Director while remaining viable for the operators. “You find in
Nicholas Muzhuzha, said some aspiring operators some instances three towers on a hill by the mobile
applied for licenses but failed to take off due to lack of network providers. This doesn’t make sense. “We have
adequate investment. The sector is capital intensive. agreed with operators that in such cases, we remove
Mr. Muzhuzha said failure to operate attracted the other two and relocate them elsewhere and Potraz
cancellation by the regulator. “We cancelled close will fund the relocation exercise. “This will ensure there
to 10. We had quite a number of licenses for Internet is no duplication of infrastructure. “If infrastructure
access providers at some point, but Potraz had to is shared, operators will compete to provide services
cancel most of them for failing to operate. When you which will be cheaper to consumers as well,” said Mr.
get a license you should roll out and provide service Muzhuzha.
to the consumers. “Potraz has not created monopolies (June 8, 2020) herald.co.zw

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166 JUNE-JULY 2020