AudiencScapes

By Tawanda Karombo
tawakarombo@yahoo.co.uk

(Harare, Zimbabwe)--The coalition government is crafting an information and communication technology (ICT) bill that is sparking hopes in the local technology sector for an improved investment climate and stronger growth prospects. Notably, the bill would establish a single regulatory authority for the sector and support a Technology Ministry strategic plan for infrastructure investment and promotion of e-business.

Minister of Technology Nelson Chamisa said the time has come for Zimbabwe to go up a notch in ICT use. “We are on course with the ICT Bill,” he said. “We want to see the sector grow and play its rightful role in equipping Zimbabweans with the necessary technology to do whatever they want to do,” he added. Among the bill's provisions will be one to promote use of e-payments by public service providers such as water and electricity parastatals.

Technology Ministry officials said the bill is close to being finalized but they would not give a precise deadline. According to Zimbabwe's legislative process, a finalized bill would need approval by the Cabinet before heading to the Parliament for debate. The bill would then go to the Upper House (or Senate) for further debate and ratification, then to the president for his signature.

Other Legislation Undercuts ICT Bill?

Tatenda Maonza, an ICT consultant based in Harare, praised the bill's potential to “tighten cyber security and to lay down a framework of how the industry is regulated.”

However, a technologically open and vibrant Zimbabwe is not a done deal. ICT professionals fret about the Interception of Communications Act, enacted in 2007, which empowers the Ministry of Technology to intercept electronic communications by individuals, among other intrusive practices. The law is viewed as draconian and an infringement on the constitutional rights of privacy and access to information, as well as a serious obstacle to a thriving ICT sector, which depends on a secure flow of personal electronic information.

According to news reports, President Robert Mugabe is considering replacing the ICA with a watered-down version in response to heavy pressure from aid donors, NGOs and human rights groups. Still, the ultimate fate of the law is not clear. Chamisa said he is hopeful that the ICT Bill will repeal and override this and other existing legislation within a single ICT law.

Analysts See Plenty of Potential

In any event, market analysts see Zimbabwe as a slowly waking giant on the African ICT landscape. Michael Nyirenda, chief executive officer of Berimark Enterprises, an ICT support and services provider, said, “There was no other moment in our history that had opportunities such as the current scenario. Demand for ICT services such as internet, mobile banking, and information systems security are on the rise.”

A recent study by Technology Strategies International and Broad Group TMT Ventures, "Investment Opportunities in the ICT Sector in Zimbabwe: 2010", says the newly inclusive government and the dollarization of Zimbabwe’s economy have the potential to fuel further ICT growth and investments. Christie Christelis, President of Technology Strategies International, highlighted the mobile market in particular as one with high potential.

Telecommunications tug of war

Zimbabwe has only three mobile telephone service providers, reflecting a cumbersome licensing process. Licensing of telecommunications operators is carried out by POTRAZ and it is unlikely that the ICT Bill will streamline the process unless the bill overrides some powers under POTRAZ.

The current providers are in a pitched battle for subscribers. Econet, by far the dominant player with 72 percent market share, is cutting rates for calls between Econet subscribers to US10 cents each between 10 pm and 6 am--equivalent to the price a text message. Telecel hit back with a similar promotion as well as a "mega-recharge" card that gives subscribers US$2 in calling credits for US$1. This is a special promotion that they have introduced and it means a reduction in Telecel’s tariffs. The extra US$1 applies to same network calls for Telecel. NetOne has introduced per-second billing and other money-saving features.

Market leader Econet boasted four million subscribers and a US$113 million profit for the year ended 28 February 2010. Econet Chief Executive Officer Douglas Mboweni said the company will soon “roll out green power” base stations that use a recently-launched technology from Huawei that cuts power consumption by about 60 percent.

More Competition in Internet

The internet space is more competitive with more than a dozen service providers. Major players include Africom, Africa Online, Zimbabwe Online, FBNet, and Ecoweb – a division of Econet. The Postal and Telecommunications Regulatory Authority (POTRAZ) recently said it received an overwhelming response from more companies to queries about offering additional web services.

The country’s major cities and towns have wireless broadband connectivity as well as Wi-Fi internet, but for now only Econet offers mobile internet connections. Telecel, an Orascom-controlled company, has just announced that it will begin offering mobile internet services beginning in mid-2010.

Early in May, local telecommunications company Aquiva announced a US$7.2 million deal with Huawei Technologies of China to build about 92 base stations for broadband internet and Voice over Internet Protocol services. Aquiva Chief Executive Officer Brian Maphosa said, “We are hoping to roll out before the end of July."

Aquiva, together with Econet and other local firms, have also expressed interest in linking to a fibre optic cable running through Mozambique and South Africa. Zimbabwean Finance Minister Tendai Biti has already released over US$6 million for laying a connection to the Beira undersea cable, which would greatly boost internet speeds and facilitating high-volume video, data and voice services as well as 3G and 4G technologies.

Sources:

1. Zimbabwe Ministry of Information Communication Technology (MICT): Strategic Plan 2010 – 2014

2. Investment Opportunities in the ICT Sector in Zimbabwe: 2010: released by Strategies International in partnership with Broad Group TMT Ventures

3. Econet financial statement for the year ended February 2010

4. POTRAZ statement