HomeBusiness DigestEconet pursues strategies to survive harsh environment

Econet pursues strategies to survive harsh environment

ECONET Wireless Holdings (EWH) is pursuing various strategies to counter the negative effects of the economic challenges facing the country to preserve shareholder value and continue to grow the business to meet rising demand for its products.

align=justify>In remarks accompanying the company’s annual report for the year to February 2006, group chairman Tawanda Nyambirai said the generation of foreign currency resources will be a priority area to the business, which will also strive to aggressively contain costs in the current year.

“Demand for the group’s products and services is expected to remain firm. The business is actively pursuing various strategies to counter the negative factors in the economy in order to preserve shareholder value,” he said.

Nyambirai said Econet will continue to expand its mobile cellular network and also engage the regulator on the adoption of a single international termination rate for the country that would impact positively on the company’s performance and foreign currency generation if adopted. Econet closed the year with a total of 457 228 subscribers, up from 258 268 in June 2005, making it the single largest telecommunications provider in Zimbabwe, ahead of two other mobile networks and the fixed-line company.

Nyambirayi said that Econet had commissioned 42 new base stations and upgraded a number of existing sites across Zimbabwe to further improve service as part of a $921 billion capital expenditure programme.

New radio transmission links had also been commissioned to enhance network reliability, he said.

Other significant projects undertaken included upgrading the capacity of the pre-paid platform and the short text messaging system.

“Acquisition and development work continues on a number of sites in anticipation of the next phase of the network upgrade. The business has adopted an infrastructure development strategy to secure all local currency based materials and civil works so as to minimise project cost escalations and delays associated with the erratic foreign currency market,” said Nyambirai. — Staff Writer.

Recent Posts

Stories you will enjoy

Recommended reading