There have been a lot of misconceptions about data tarrifs in the country, following recent social media posts claiming that Zimbabwe’s data costs are higher than those of neighbouring nations.
A chart (below) displayed Zimbabwe with some of the lowest headline tariffs (government-approved maximum prices) for data in the region. Yet, the reality on the ground bit differently.
Confused citizens scratched their heads. Why did their data plans seem more expensive than neighboring countries like Botswana and Malawi, which supposedly had higher headline tariffs?
The answer lay in the realm of cut-throat competition. Mobile operators in those countries, battling for market share, offered rock-bottom prices well below the maximum permitted limits. This aggressive competition, coupled with favorable economic conditions, allowed them to function profitably despite the low prices.
Zimbabwe, however, faced a different story. Landlocked and lacking the luxury of undersea cables, the process of bringing data involved expensive trenching all the way through South Africa. This hefty infrastructure cost was further burdened by the unpredictable RTGS currency and the struggle for stable electricity. Generators, fueled by expensive resources, became a necessary evil to keep base stations operational, further inflating the overall cost.
The situation felt paradoxical. While the government-set prices looked promising on paper, the harsh realities of the market and the country’s infrastructure challenges painted a different picture.
“While South Africa’s “uncapped” data appears cheaper due to its infrastructure and currency stability, the Fair Usage Policy throttling significantly reduces the actual usability of unlimited data plans.
Local mobile network operators do not throttle data but for example caps their smart 50 at 1.5TB
On the costing effect, Zimbabwe faces challenges due to its geographic location, currency instability, and unreliable power supply, leading to higher operational costs for data providers and ultimately impacting consumer prices,” said Toneo Rutsito, the Zimbabwe Online Content Creators President.
