Claim: A video circulating on Tik Tok in Zimbabwe social media platforms claims that Zimbabwe has the most expensive data in the world at US$75 per Gigabit.
This prompted the Post and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) to publish a statement comparing data tariffs in the SADC region in which it claims the country has the lowest data tariffs in the Southern African Development Community (SADC) region. Is this true?
VERDICT: Not true
Where does POTRAZ rank Zimbabwe in the region?
In a statement, POTRAZ Director General Gift Machengete said Zimbabwe has the lowest data tariff in the SADC region, with an out of bundle tariff of ZWL14,930 which translates to USD3.21 per Gigabit at the September 2023 official exchange rate while the SADC average is at USD4.60 as outlined in the table below.
Regional Tariff comparison using new tariff thresholds (Inclusive of all taxes) of Mobile Network Operators (MNO) compiled by POTRAZ.
Where is Zimbabwe ranked by regional communications regulators?
The Communications Regulators’ Association of Southern Africa’s 2022 Consolidated Country Report outlined the ratings for fixed broadband services, which showed variances in Zimbabwe’s ranking. The country had relatively lower prices for medium speed broadband (10mbs) and was comparatively more expensive bundles for high speed internet (25mbs). Zimbabwe was however not ranked the cheapest in any category.
Country | Speed (Mbps) | Data Allocation (GB per month) | Cost US$ |
Namibia | 4 | Unlimited | 19.30 |
Mauritius | 10 | Unlimited | 13.32 |
Botswana | 4 | Unlimited | 32.71 |
DRC | 15 | Unlimited | 49.40 |
South Africa | 5 | Unlimited | 19.10 |
Tanzania | 12 | 300 | 4.92 |
Eswatini | 2 | 20 | 5.26 |
Lesotho | Not Advertised | 10 | 5.48 |
Zambia | 3 | 60 | 24.00 |
Mozambique | 4 | 60 | 37.56 |
Malawi | 10 | 50 | 9.36 |
Zimbabwe | 10 | 10 | 9.92 |
Benchmark on fixed Broadband Services in SADC, September 2022
Factors influencing broadband pricing
i. Currency confusion
The inaccuracies on data prices are largely based on misunderstanding over the currency regime in Zimbabwe. However, in real terms, the US dollar had already been trading at a premium to the local unit, especially since the introduction, in 2016, of bond notes.
ii. Inflation
Research by CRASA has shown that Tariffs offered by Mobile Network Operators in SADC countries are not cost based, rather they are priced to suit market situation as defined by prevailing forces of demand and supply and local competition landscape in general.
iii. Tax
Affordability of Broadband Services is also affected by the Taxation Regimes in respective jurisdictions.
Connection fees for fixed Broadband Services in SADC
According to CRASA Zimbabwe has the highest connection fees for broadband services in Southern Africa whilst Namibia has the cheapest.
Country | Connection fees in USD |
Zimbabwe | 76.77 |
Eswatini | 49.53 |
DRC | 49.40 |
Mauritius | 43.75 |
Malawi | 39.42 |
Angola | 38.11 |
Lesotho | 27.67 |
Botswana | 18.75 |
Namibia | 16.55 |
Source
Post and Telecommunications Regulatory Authority of Zimbabwe
Communications Regulators’ Association of Southern Africa