Zimbabwe’s Netone Franchise Cedes US$ 200 Million

By Abdul Rahman Suagibu –

Photo Credit: Twitter

NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- ZIMBABWE, State mobile network operator – NetOne’s Franchise programme has brooks fruit and by extension moved up towards closest to US$200 million dollars since launch of the programme a little over a year ago. The franchise programme is bent at enabling the telecoms operator’s distribution channels as it creates convenience and efficiency, bringing products closer to the market.

Lazarus Muchenje – Chief Executive Officer highlighted, this is also one way of empowering the communities under the firm’s initiatives to heighten entrepreneurship within communities which has seen thousands of jobs being created across the value chains throughout the country.

The Franchise programme contributed US$40 million in 2018, following its launch in May that same year the CEO noted in an interview.

In 2019, its contribution boosted up to US$131 million as the programme conveniently gained ground in the cause of it to maintain its inertial motion; as more local businesses at community level came on board.

“Now we have over 1,500 franchise shops that have been established across the country from only 34 shops two years ago,” he said in an interview.

This signals as the mobile operator is working on its u- turn that should see it grow into a world class telecoms company.

Mr. Muchenje noted, the company had selected a back to basics approach, which is pegged on quadruple key strategic pillars oscillating quality network, quality distribution, quality contact Centre and a quality balance sheet all minted to form an efficient business.

“NetOne has been making strides in terms of transition to a sound organization and we set out to clean up what we could, improve. We are out of loss making, back to profitability,” he noted.

Although the firm’s financials for the year 2019 are not yet out, indications are that the mobile operator is profitable and prospects for financial year 2020 remain bright, despite the challenging business environment.

“FY2020 will be bigger, we are maintaining the 2019 growth momentum,” said Mr. Muchenje.

Other initiatives the telecoms firm has embarked on to improve network availability is realigning available infrastructure to match existing demand. In the circumstance, the telecoms firm has redefined some of its 4G infrastructure to areas of high demand thereby enhancing quality network which has seen improvement in data speed and availability.

This concept has already seen improvements in capacity utilization of the already existing infrastructure as opposed to having 4G network in areas with low demand for that service.

NetOne’s growth prospects will also be supported by its mobile money platform, OneMoney, which has also been on a growth trajectory of recent.

According to Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ)’s third quarter report for 2019, OneMoney grew by 27 percent to 428 529 from 335 132 subscribers.

The regulator has also forecasted mobile money to continue on a growth path as adoption for plastic money continues to gain traction in Zimbabwe due to the obtaining cash shortages.

For New Africa Business News Abdul Rahman Suagibu Reports,  Africa Correspondent

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