Banking And Finance
The country's government has been petitioned by the industry group that represents Zimbabwe's telecommunications businesses, the Telecommunications Operators Association of Zimbabwe (TOAZ), to alter the law to allow operators to set pricing that is commercially viable.
The sector's tariffs are currently set in local currency. To protect against fluctuations in exchange rates, TOAZ Chairman Lawrence Nkala has asked Parliament to permit the industry to link its prices to US dollars.
In order to protect themselves against currency volatility and inflation that damage the Zimbabwe dollar, many companies, traders, and parastatals are increasingly indexing the majority of their goods and services in foreign currency, as noted by the Zimbabwe Herald.
Currently, the nation's telecommunications sector is dealing with a number of difficulties, such as foreign currency shortages, foreign currency debt, and relatively low tariffs in relation to rising costs.
To make matters worse, all of the major telecom companies in Zimbabwe are heavily indebted. The availability of foreign currency for paying overseas vendors, however, is a significant obstacle. Additionally, this has prevented long-overdue investments in network upkeep and capacity expansion.
Another issue is power expenses. Due to the unreliability of the electricity grid, businesses are compelled to buy fuel for diesel generators to power base stations.