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Tawanda Karombo reports on Econet’s plans to significantly upgrade its mobile network in the capital. The company just received a multimillion line of credit from a Swedish creditor.

by Tawanda Karombo

Harare, Zimbabwe— Buoyed by rising demand for services in the country’s major urban centers, Zimbabwe’s biggest telecommunications company, Econet Wireless Zimbabwe, has secured a US$25.6 million loan facility and plans to plow the money into upgrading the mobile operators’ network in Harare.

The majority of Econet’s subscribers are in the capital Harare. The company has more than 4 million subscribers on its network and is eyeing further expansion into the country’s outlying areas. Chief executive officer, Douglas Mboweni, has already revealed plans to surpass 5 million subscribers by year end. However, rivals Telecel and NetOne are not too far behind, reporting in previous weeks that they will also be revamping their services.

The US$25.6 million loan facility is from EKN, a Swedish export credit agency. Econet’s Chief Executive Officer, Douglas Mboweni, told the media in Harare this week that the entire loan would be channeled toward buying equipment for Harare. “Our customers in Harare are increasingly buying phones, which require more capacity and capability on the network,” he said.

Mboweni added that engineers who will undertake the upgrading of the Harare network had already arrived in the country and will soon be getting down to work on the project.

Subscribers have recently reported problems with the mobile firm’s network in Harare. Subscribers have complained over dropped calls, non-refunding for undelivered text messages and an unreliable mobile internet service. “Econet must know that it is the quality of service that counts, not just big numbers. We want refunds for failed messages,” complained one subscriber in a letter to the editor in the Newsday publication.

“Econet’s systems are pathetic: The customer service center doesn’t work, text refunds are hardly ever effected and when they are, they will have expired,” said one subscriber.

Mboweni explained that the company would be addressing such problems. “Econet is currently expanding its network capacity around the country, including its 3-G service,” said Mboweni.

Econet has also introduced a solar-charged cell phone that uses solar energy as power.

Last month, Econet made entry into the United Kingdoms’ Mobile Virtual Network market after agreeing to a deal with mobile firm Orange. The arrangement agreed by the two firms will allow Econet to offer services to its own customers in the UK using the Orange network.

"Orange had to fight off another major operator, Vodafone, to clinch the deal with Econet. The reason for the intense interest in Econet comes from the fact that market research shows that Econet is now one of the most admired businesses amongst Africans. There is strong brand recognition of Econet because many people across Africa, see the company, as an 'African success story, in a world of Western and now Eastern multinationals," said Orange in a statement.

Tawanda Karombo
Tawanda Karombo is a freelance journalist living in Zimbabwe.
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