Fact Check: No, Zimbabwe does not have the cheapest data tariffs in SADC

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.

CountrySpeed (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.

CountryConnection fees in USD
Zimbabwe76.77
Eswatini49.53
DRC49.40
Mauritius43.75
Malawi39.42
Angola38.11
Lesotho27.67
Botswana18.75
Namibia16.55
Connection fees for broadband services in SADC

Source

Post and Telecommunications Regulatory Authority of Zimbabwe

Communications Regulators’ Association of Southern Africa

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