CHAIRMAN’S STATEMENT
Introduction
As we reflect on our journey, it is clear that innovation has been the driving force behind our success. Our continuous deployment of capital has enabled us to harness cutting-edge technologies and solutions, transforming the way we operate and deliver value to our customers and shareholders.
Network infrastructure
Growing expectations from customers for better services, enhanced experiences and wider coverage have driven significant effort and investments into our network modernisation journey as we expanded and optimised existing capabilities. During the half year, we introduced 26 lightweight and cost-effective base stations, targeting underserved and rural communities as we continue to improve coverage in areas historically challenged by poor connectivity. In addition, we deployed 27 new sites with 2G, 3G and 4G capabilities. Our 5G expansion programme was accelerated with an additional 100 new sites nationwide. These installations form the backbone for future innovation, enabling the introduction of new product offerings and the activation of various Internet of Things (IoT) use cases.
The migration to the new billing and subscription platform progressed significantly. This advanced system will automate critical business processes and enable the delivery of more personalized and customer-centric digital experiences.
Substantial progress was made on the MyEconet App, a self-care application designed for our prepaid customers, which allows customers to manage their accounts securely from their smartphones. We are particularly thrilled with the successful launch of the eStore functionality on the MyEconet App, which is now ready for customer use, following rigorous testing.
The business continued to embed artificial intelligence (AI) based solutions into core business processes to enhance capacity and understand customer segment needs. Solutions deployed include predictive models and advanced recommendation engines to provide highly tailored experiences and drive usage across all service buckets. We launched 14 new use cases on the Yamurai WhatsApp platform with further scope to extend Yamurai to interactive voice response (IVR) as a voice chatbot. This innovation is expected to reduce the call centre helpline traffic by up to 30%, easing congestion and enhancing the overall customer experience.
Environmental, Social and Governance (ESG)
Anchored on our commitment to digital inclusion, our ESG efforts are focused on delivering enduring positive outcomes for both society and the environment. We are continuously enhancing our framework, policies and reporting capabilities, with particular emphasis on climate change mitigation and resilience.
Through the Higherlife Foundation, the Group reinforced its mission to invest in human capital development focusing on education, health and sustainable livelihoods through various sustainable initiatives.
Financial performance
In accordance with the guidance issued by the Public Accountants and Auditors Board (PAAB), the Group applied International Accounting Standard 29 – Financial Reporting in Hyperinflationary Economies (IAS 29) in the preparation of the consolidated interim financial statements. The financial performance review is based on these inflation adjusted interim financial statements. Historical cost financial statements have been presented as supplementary information. The Directors caution users of the financial statements on their usefulness considering distortions that arise when reporting in a hyperinflationary economy.
The Group recorded a 38% increase in revenue compared to the same period last year, driven by volume increases across all major service lines. The mobile network operations segment contributed 82% of the total revenue while mobile financial services (mobile money) and the insurance segments contributed 14% and 4%, respectively.
Mobile network operations (MNO)
The financial performance of the segment reflects the positive impact of our continued investment in the network infrastructure. Data traffic doubled and voice traffic grew by 34% compared to the same period last year. This growth in traffic was enabled by the network modernisation exercise carried out by the business. Capital investment to revenue ratio of 12% was channelled towards network infrastructure to improve network quality and coverage.
The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) margin remained firm at above 45%. The implementation of cost optimization strategies contributed to sustaining stable and healthy profitability margins.
Financial technology
EcoCash, the mobile financial services business, continued to register significant growth in its wallet services with a 35% increase on transaction volumes compared to the same period last year. Our strategic initiative to expand mobile money accessibility anchored the growth in our mobile financial services footprint since August 2024, thereby enhancing customer access to our services.
The InsurTech segment seeks to preserve value for our customers by providing flexible and affordable coverage options. Ecolife achieved a 50% increase in individual life policies compared to the same period last year. Moovah and Maisha recorded growths of 31% and 63% respectively in total policyholders and membership compared to the same period last year.
Outlook
The Group remains committed to driving growth, with strong focus on innovation and customer experience. Deployment of artificial intelligence to enhance efficiency, security and customer experience are key imperatives. Our strategic imperatives will continue to optimize capital investment and innovation to drive sustainable growth and value for our stakeholders. As we operate within highly regulated industries, we continue to work closely with industry bodies as well as relevant authorities to ensure a continued favourable operating environment.
Dividends
The Company declared and paid interim dividends of 0.63 US cents and 0.60 US cents for the half year in respect of all the qualifying ordinary shares of the Company.
Appreciation
On behalf of the Board, I wish to extend my sincere appreciation to all our staff for their dedication, resilience and commitment to driving the business. I also wish to recognize and appreciate our customers and stakeholders for their continued support which has anchored the Group’s success.
By order of the Board of Directors
Dr. J. Myers
Chairman of the Board
23 October 2025
