Ecobank has rated Zimbabwe as a country with the second most expensive mobile data in sub-Saharan Africa with 1 gigabyte costing $25.
Ecobank in its September 2018 report says in countries like Zimbabwe where mobile data is upwards of 13 per cent of monthly gross national income per capita (GNI per capita), accessing the internet regularly is unaffordable for most consumers, perpetuating digital exclusion.
GNI per capita is the sum of value added by all resident producers plus any product taxes (fewer subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad according to the United Nations International Children Emergency Fund (UNICEF). Zimbabwe’s GNI per capita is $890 according to the World Bank.
“The impact is felt not just by consumers, who do not have access to the services and information that can be provided digitally, but also by SMEs (which make up over 90% of businesses in Africa),” Ecobank says.
Equatorial Guinea, at $35.47, has the highest data charges in sub-Saharan Africa.
Zimbabwe is rated as with the second highest data in sub-Saharan Africa despite a reduction in internet prices to 5 cents per megabyte in July this year.
Commenting on the Government’s decision to reduce the charges, Media Institute of Southern Africa Zimbabwe (MISA Zimbabwe) says the reduction in out-of-bundle data will not benefit as many consumers as initially thought because most consumers do not use out-of-bundle data.
“It is cheaper for a consumer to buy a social media bundle that only gives access to WhatsApp, Facebook, Twitter or a combination of social media services,” MISA Zimbabwe says. “On average, consumers across Zimbabwe’s three Mobile Network Operators (MNOs) pay an average of $5 for a 30-day social media bundle.”
“Other services such as email and general websites are not accessible through mobile data bundles. A consumer must, therefore, buy mobile data at out-of-bundle rates that are far more expensive when compared to bundled data. A natural consequence of the current pricing regime is that the majority of consumers will opt for bundled data as opposed to the more expensive out-of-bundle data.”
Ecobank says the high costs of data across Africa remains a major blockage to digital innovation.
“The sobering reality is that Africa has the most expensive mobile data, both in real and income-relative terms, in the world. At a regional level, East Africa has the most affordable mobile data,” Ecobank says.
“The average cost for 1GB in Ethiopia, Tanzania, Burundi, Kenya and Rwanda lies below Africa’s relatively expensive median of US$7.04.”
Zimbabwe’s Eastern neighbour Mozambique has the cheapest mobile data in sub-Saharan Africa at $2.08.
Ecobank has that African government have a responsibility in developing policies and regulations that drive data prices down.
“This could mean reducing the typically high fees charged for new mobile licences, which discourage new entrants; governments could recoup the lost income by introducing reasonable taxes on data usage which would grow as their citizens become more connected,” Ecobank says. “Competition should also be incentivised, especially in countries with only two or three MNOs.”
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