THE Zimbabwe Investment and Development Agency (Zida) has identified the information and communication technology (ICT) sector as a leading investment portfolio for 2025, with projected revenue of US$3,85 billion from upcoming projects.
Zida said this week the telecoms sector was rapidly transitioning to data-driven services, with mobile internet and data traffic continuing to rise.
It said internet penetration stood at 65,4%, rising in tandem with higher adoption of broadband services. Zida said voice traffic was also on a positive trajectory.
“Infrastructure development is accelerating, with the deployment of LTE base stations and the adoption of advancements in 5G technology by other operators,” the agency said in its 2025 projects report.
Powertel Communications’ fibre internet project is expected to generate US$231 million in revenue.
The project involves deploying an optical fibre network that utilises gigabit passive optical network (GPON) technology to provide ICT services, primarily broadband internet.
“The Powertel GPON project seeks to deliver high speed internet and telecommunications services. Overhead optical fibre cables will be deployed on existing power line infrastructure in metropolitan and rural areas across Zimbabwe,” Zida said.
“GPON technology will be deployed as the active equipment to enable customers to access internet services via the optical fibre network. The target market is the more than 900 000 households and SMEs connected to the electricity grid who require tactile internet that is highly available, reliable, secure, and fast.”
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The report said TelOne was developing its fibre to the home project, which involves installing broadband infrastructure to connect approximately 114 000 homes nationwide.
Upon completion, the project is estimated to generate US$719 million in revenue, with a payback period of four years and nine months.
“This is a brownfield project aimed at expanding internet broadband services and extending last mile connectivity to homes and individual subscribers,” Zida said.
The project requires US$50 million, structured as a build, lease, maintain, and transfer (BLMT) public private partnership.
Another TelOne initiative, the wireless broadband area, will improve internet connectivity in the Midlands, Matabeleland, Masvingo, and Manicaland.
This US$263,2 million initiative involves deploying approximately 1 600 wireless base stations under a BLMT model.
“The project targets connecting 500 000 users in rural and peri-urban areas, addressing the digital divide and fostering digital inclusion,” Zida said.
“With feasibility studies completed, the project’s viability is proven, offering favourable returns alongside significant social impact.”
Projected revenue for this initiative is US$2,9 billion, with an investment payback period of five years.
The projects represent a combined projected revenue of US$3,85 billion.
The ICT sector is expected to outperform projected turnover from manufacturing (US$3,31 billion), agriculture (US$1,2 billion), and infrastructure (over US$346 million).
