Econet pays ZiG4.3bn in taxes

Published: 2 hours ago

Econet Wireless Zimbabwe has paid more than $4.3 billion in taxes to the national fiscus for the half-year period ending August 2025, according to its latest interim financial statements.

The taxes - equivalent to 31 percent of the company's total revenue - include $1.2 billion in income tax, $1.9 billion in Value Added Tax (VAT) and $1.236 billion in excise duty, underscoring Econet's position as one of the country's largest corporate taxpayers.

The company's strong financial performance coincided with a major recognition from the Zimbabwe Revenue Authority (ZIMRA), which awarded Econet the Customs and Excise Accolade for outstanding compliance and contribution to national revenue.

During the period under review, Econet posted inflation-adjusted revenue of $13.5 billion, marking a 38 percent increase from the same period last year. Profit soared by 331.9 percent to $2.9 billion, driven by rising data usage, network expansion and improved operational efficiencies.

Board chairman James Myers attributed the impressive outturn to continued investment in network infrastructure and product innovation.

He noted that mobile network operations remained the company's mainstay, contributing 82 percent of total revenue. Mobile financial services accounted for 14 percent, while insurance services contributed 4 percent.

"The positive financial outturn reflects the impact of our continued investment in the network. Data traffic doubled, while voice traffic grew by 34 percent compared to the same period last year," Myers said.

He added that capital expenditure - representing 12 percent of revenue - was channelled towards improving network quality and expanding national coverage.

Econet maintained an EBITDA margin above 45 percent, supported by cost-optimisation initiatives that helped sustain profitability.

EcoCash, the company's mobile money platform, recorded a 35 percent surge in transaction volumes, bolstered by ongoing efforts to deepen financial inclusion and extend access to digital financial services following its rollout strategy launched in August 2024.

In its InsurTech division, Ecolife saw a 50 percent increase in individual life policies, while Moovah and Maisha achieved growth of 31 percent and 63 percent respectively, signaling rising demand for flexible digital insurance products.

Myers said growing customer expectations for better service quality and faster connectivity had driven accelerated infrastructure deployment across Zimbabwe.

During the reporting period, Econet installed 26 lightweight base stations in rural and underserved communities and constructed 27 additional base stations elsewhere, including modern 4G sites. The company also scaled up its 5G rollout with 100 new sites deployed nationwide.

"These investments form the backbone of future innovation, including Internet-of-Things (IoT) services and new digital product offerings," Myers said.

Looking ahead, Econet says it remains committed to growth, with a strategic focus on innovation, customer experience and artificial intelligence to enhance efficiency, security and service delivery.
- NewsDay

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