Zim firms at risk as internet costs surge
When a sharp hike in Zimbabwe’s internet costs drove Joyce Kapvumfuti’s small catering enterprise offline for a week, orders for her wedding cakes, business lunches and frosted cupcakes collapsed.
“I used to get at least five customers a week when advertising and marketing online, but when ... I don’t have internet data, I’ll be lucky if I manage to get two,” Kapvumfuti said at her home in the city of Mutare.
As a result, she said she now spends much of her modest earnings on data — meaning she is struggling to cover other basic expenses such as rent and food for her two children.
Internet costs are skyrocketing in Zimbabwe amid real annual inflation estimated unofficially at 1,000%, making it harder for people to access basic services, study or make a living from online enterprises like Kapvumfuti’s or remote work.
Econet Wireless Zimbabwe, the country’s main mobile operator, increased data prices 100% in October, with 1GB of data now averaging $3.54.
State-owned NetOne, the second-biggest mobile operator, has increased data prices by a similar percentage.
“When internet data bundles were increased, I wasn’t prepared. I found myself offline,” Kapvumfuti said as she scrolled through her smartphone, explaining that most customers for her home-based business find her through Facebook, TikTok, Instagram and WhatsApp.
October’s increase triggered demands by digital rights and anti-poverty campaigners for the government and the Potraz telecoms regulator to take action to bring down prices and tackle a deepening digital divide.
‘A LUXURY’
“Internet access has been reduced to a luxury that only the elite few can afford,” said digital rights lawyer Nompilo Simanje, who has worked previously with the Zimbabwe chapter of the Media Institute of Southern Africa, an NGO.
“We are in the digital age and every ordinary person needs it in their day-to-day lives,” she said, noting that data costs had risen sharply during the last three years.
Average data costs in Zimbabwe are higher than in neighbouring countries, far exceeding the average of $1.81 for 1GB in SA, $0.38 in Malawi or $0.78 in Mozambique and $1.26 in Eswatini, according to the Worldwide Mobile Data Pricing 2023 report released by Cable.co.uk.