Econet may ‘wean off’ Ecocash


Image: Douglas Mboweni. By BiztechAfrica
Douglas Mboweni

By Alfonce Mbizwo, Harare, Zimbabwe

Zimbabwe’s largest mobile phone operator Econet Wireless says it may wean off its successful mobile money transfer service, Ecocash, as it seeks to boost its growth.

Chief executive Douglas Mboweni told an analysts' briefing that that the company will pursue various models on Ecocash, one of which may be weaning it off for it to become a separate business unit – depending on the size of volumes.

Ecocash has 1.7 million subscribers and 1 600 agents and has, since inception, transacted USD300 million worth of transfers. Ecocash was now handling average monthly transactions of USD70 million, Mboweni said. 

The company reported a 4.5% rise in half-year earnings, mainly driven by subscriber growth. Subscriber numbers grew 9% to 7 million in the year, driving revenue up to USD340 million from USD291 million previously.

Econet's basic earnings per share rose to USD0.46 during the six month period to August, compared to $0.44 the previous year.

“Since dollarisation the company has given USD74 million in dividends, USD100 million in share buybacks, USD1billion in investment and USD500 million in taxes”.  

Further, he said, coming from a period of severe disinvestment pre-2009, the company had to concentrate on building up capital for the generation of cash flow for long-term investors. 

“Econet is working on increasing dividend cover ratio,” Mboweni added.

Airtime sales contributed 66% of revenue, down 1% and 10% towards revenue growth while interconnect and roaming fees and Data, SMS and internet services stagnantly contributed 16% and 13% respectively.

Other services sales showed a marginal growth up 1% to 5% on last year.  Data revenue picked up 50% to USD21 million on last corresponding half year mainly from corporate subscribers and swelling Smartphone usage.

Econet has over 70% of the Zimbabwe mobile phone market.

Share the News

Get Daily Newsletter

comments powered by Disqus


Gaborone to host inaugural Botswana Seedstars challenge

Seedstars World, the global seed-stage startup competition for emerging markets and fast-growing startups, is coming to Botswana for the first time this week. Read More

Nigeria needs $25b investment in broadband, says Wood

Telecoms executive Adrian Wood speaks to Kokumo Goodie about investment potential in Nigeria. Read More

British Airways, Safaricom launch SME initiative

British Airways and Safaricom have partnered to launch an initiative that will provide international exposure for five business owners in Kenya's Small and Medium Enterprise (SME) sector.  Read More

MTN Botswana to widen its services

MTN Business Botswana has reaffirmed its commitment to use its extensive capabilities in the telecommunications sector to provide relevant, quality and affordable ICT solutions to local businesses. Read More

Yet another date for BTCL IPO

Botswana's Minister of Transport and Communications says the long awaited Botswana Telecommunications Corporation Limited (BTCL) Initial Public Offering (IPO) will be settled before the end of this year. Read More

NCC gives MTN fresh window to pay N1.4tr fine

The Nigerian Communications Commission (NCC) has opened a new window to MTN Nigeria for the payment of N1.4 trillion fine imposed on the telco. Read More

MTN Nigerian fine deadline extended

The deadline for the payment of the $5.2 billion fine imposed on MTN in Nigeria has been extended until negotiations between MTN and the NCC have been concluded. Read More

Vodacom, Tracker SA unveil fleet solution in Nigeria

Vodacom Business Nigeria and Tracker South Africa have unveiled their Fleet Management solution in Nigeria.  Read More

Innovative payment solutions a hot topic in SSA: study

The first shopping and retail social listening study, released by MasterCard, reveals consumer trends in three sub-Saharan African markets. Read More

CastIron to host first B2B ICT conference

CastIron, a Gaborone-based ICT oriented company, will host the first business to business information ICT conference in Botswana soon.  Read More


Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks Unlimited


eCommerce in Africa urged to take advantage of mobile eCommerce in Africa urged to take advantage of mobile

The Executive Chairman of Alltel has urged operators of eCommerce in Ghana and Africa as a whole to take advantage of the current trend for Africans to trade online via their mobile handsets. 


Nigeria needs $25b investment in broadband, says WoodNigeria needs $25b investment in broadband, says Wood

Telecoms executive Adrian Wood speaks to Kokumo Goodie about investment potential in Nigeria.