Internet Costs Skyrocket in Zimbabwe, Pushing Small Businesses to the Edge

Mutare, Zimbabwe has become a focal point for a growing crisis in the country's digital landscape. The staggering increase in internet costs is casting a shadow over the aspirations of small business owners and students alike, with potentially far-reaching consequences for the Zimbabwean economy and society.

The plight of entrepreneurs like Joyce Kapvumfuti, who runs a home-based catering business in Mutare, illustrates the severity of the situation. Joyce was relying on online platforms to market her products, but after the recent internet price hikes, maintaining an online presence became a costly ordeal.

Such challenges are symptomatic of a broader issue within Zimbabwe. Internet costs have soared amidst hyperinflation, with unofficial estimates suggesting a staggering annual inflation rate of around 1,000%. This economic backdrop has prompted telecom giants such as Econet Wireless Zimbabwe and state-owned NetOne to double their data prices, placing a 1GB data plan at an average price of $3.54 - a considerable amount for many Zimbabweans.

This pricing stands in stark contrast to surrounding nations where the cost of data remains more affordable. As per the Worldwide Mobile Data Pricing 2023 report by Cable.co.uk, neighboring countries like South Africa, Malawi, Mozambique, and Eswatini boast significantly lower average prices for 1GB of data. The telecommunications regulatory authority in Zimbabwe, Potraz, disputes these findings, claiming a lower average cost but the reality on the ground suggests otherwise.

Industry stakeholders are feeling the pinch. Toneo Rutsito, chair of the Zimbabwe Online Content Creators group, points to the detrimental impact of these price hikes on both producers and consumers of digital content, hinting at a stifling of the industry.

The scenario is just as dire for consumers of internet services. Kuda Chisvo, who operates an online vegetable retail outlet, and Tafadzwa Chaitezvi, a nineteen-year-old student, have both experienced significant challenges following the surge in internet costs, with the latter having to resort to using borrowed Wi-Fi to download study materials.

The heavy toll of these price increases has spurred social media campaigns such as #DataMustFallZW, which advocates for more affordable internet access. The campaign has received renewed attention following the latest price hikes, drawing public attention to the digital divide that threatens to leave the average Zimbabwean behind in this era of digital connectivity.

Despite social media outcries and the voicing of concerns by organizations like the Media Institute of Southern Africa (Misa) Zimbabwe, responses from the industry and government have been limited. Telecoms operators cite increased operating costs due to foreign currency demands, and Potraz defends the hikes by asserting the need to maintain a balance between service affordability and the viability of operators. However, the practical day-to-day impact on regular Zimbabweans remains profound and distressing.

For small business owners such as Joyce, the struggle to afford internet data translates into a struggle to sustain their livelihoods. Without resolution or intervention, Zimbabwe's digital divide looks set to widen, with long-term implications for the country's economic development and societal well-being.