Ministry, POTRAZ Addressing Increase in Data Charges – Minister Mavetera

The Minister of ICT, Postal and Courier Services in Zimbabwe, Tatenda Mavetera, has acknowledged the recent increase in data charges and assured the public that the ministry, in collaboration with the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), is addressing the issue.

Telecommunications companies in the country recently doubled their tariffs, with POTRAZ granting approval for this adjustment in the local currency (ZWL), which caused a public outcry. However, the tariffs in US dollars remain unchanged.

Experts in the industry attribute the need for tariff adjustments to various economic factors, including currency stability, electricity prices, and fuel costs, all of which have experienced significant fluctuations. POTRAZ’s decision to allow the increase in local currency tariffs aims to support the struggling telecommunications sector.

This year has seen three tariff increases due to the depreciation of the local currency against the US dollar, with the latest adjustment being prompted by a 444% depreciation since April. Telecommunications providers raised prices to ensure the sustainability of their services.

According to Gift Machengete, the Director-General of POTRAZ, the tariff changes were determined based on the Telecommunications Price Index. However, the minister indicated in a statement that the government is working closely with the regulator to address the public’s concerns and complaints regarding the recent tariff increase. The minister emphasized their commitment to resolving the issue promptly.

Voice tariffs have doubled to US$0.40 per minute, while data tariffs now stand at US$0.63 per megabyte. However, these rates still remain below the regional average.

While these tariff adjustments may benefit service providers, they pose challenges for consumers who earn salaries in the local currency. High internet charges have long been a concern, highlighting the need for pricing limits to protect economically disadvantaged individuals. Additionally, the dominance of monopolies in the sector and weak regulatory oversight contribute to the problem.