Cash crisis spurs mobile money growth by 43 percent
Liquidity challenges spurred the growth of mobile money by 43 percent from 2016 to 2017, Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) abridged annual postal and telecommunications sector performance report 2017 has revealed.
According to the report released Thursday afternoon, the total number of active mobile money subscriptions increased by 42.5 percent to reach 4 706 778 in 2017 from 3 303 188 recorded in 2016.
Mobile money platform owned by Econet Wireless, Ecocash experienced a growth of 41 percent up from 3 245 405 to 4 574 409.
Telecash recorded 60 percent growth from 49 549 to 79 429.
State owned telecommunications company, NetOne's One Money recorded 543 percent increase from 8 234 to 52 940.
The upsurge in the number of subscribers was experienced in May last year as the liquidity crunch took a stinging bite on the generality of the populace.
"Mobile money provided an effective alternative to cash for making payments in the midst of the liquidity crisis," reads the report.
As a result of the increase in mobile money usage, mobile operators experienced an increase in their revenues.
"The total revenue generated by the mobile operators increased by 17.6 percent to record $849 880 489 in 2017 from $722 934 718 recorded in 2016."
According to the report, operating costs also increased by 4.7 percent.
However, there was a decline on investment.
"Investment declined by 46.3 percent to record $100.9 million from $187.7 million invested in 2016."
The report attributes the growth in mobile revenues to the growth in mobile internet and data usage as well as mobile money.