Zimbabwe Grapples with Soaring Internet Costs, Straining Small Businesses

Zimbabwe's Internet Price Surge: A Digital Dilemma for Small Businesses and Students

by Ikeoluwa Ogungbangbe

The rising cost of internet access in Zimbabwe is wreaking havoc on small businesses and individuals, as the nation contends with unofficial annual inflation rates reaching approximately 1,000%. This surge in internet expenses is obstructing access to vital services, educational opportunities, and online enterprises, all contributing to a deepening digital divide.

Joyce Kapvumfuti, a small-scale caterer in Mutare, saw her catering business suffer when a sharp increase in internet costs forced her offline for a week. Orders for wedding cakes, business lunches, and cupcakes plummeted as she struggled to maintain an online presence.

Kapvumfuti stated, “I used to get at least five customers a week when advertising and marketing online, but when I don’t have internet data, I’ll be lucky if I manage to get two.” This struggle to maintain an online presence has pushed her to allocate a substantial portion of her earnings towards data, making it challenging to cover other essential expenses like rent and food for her family.

In Zimbabwe, the cost of internet access has surged dramatically, accompanied by unofficial annual inflation rates hovering around 1,000%. Econet Wireless Zimbabwe, the nation’s primary mobile operator, implemented a 100% increase in data prices in October 2023, with 1 gigabyte (GB) of data averaging $3.54 (R66). The state-owned NetOne, the second-largest mobile operator, followed suit with a similar price hike.

The impact of these increases was felt acutely by online entrepreneurs like Kapvumfuti, who relied on platforms like Facebook, TikTok, Instagram, and WhatsApp to connect with customers.

These developments triggered calls from digital rights advocates and anti-poverty campaigners for government intervention and regulatory action to address the growing digital divide.

Nompilo Simanje, a digital rights lawyer who previously worked with the Zimbabwe chapter of the Media Institute of Southern Africa, expressed concern over the situation, saying, “Internet access has been reduced to a luxury that only the elite few can afford. We are in the digital age, and every ordinary person needs it in their day-to-day lives.”

Comparative data reveals that average data costs in Zimbabwe exceed those of neighbouring countries, far surpassing the average of $1.81 (R33.80) for 1GB in South Africa. According to the Worldwide Mobile Data Pricing 2023 report by Cable.co.uk, the average cost of 1GB in Zimbabwe is $3.21 (R60) when accounting for exchange rate fluctuations.

These price hikes, particularly the doubling of Econet’s prices in October, have significantly impacted household budgets in Zimbabwe. With an average monthly wage for civil servants hovering around $200 (R3,735), individuals are forced to make sacrifices in other areas of their lives.

Young people, like 19-year-old high school student Tafadzwa Chaitezvi, face particular challenges. Chaitezvi, unable to afford mobile data, must access the internet using his father’s workplace Wi-Fi to download study materials.

Amid the escalating concerns, an online campaign called #DataMustFallZW, led by Misa Zimbabwe, has resurfaced on social media platforms. This campaign, initially launched in 2022 in response to data price hikes by NetOne, aims to pressure internet providers and authorities to formulate more accessible pricing for low-income individuals.

As Zimbabwe grapples with internet affordability, individuals like Chaitezvi remain uncertain about the sustainability of their online learning experiences, highlighting the urgency for solutions to bridge the digital divide.

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