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Michael Tome Business Reporter

ECONET Wireless Zimbabwe (EWZ) has lauded the positive impact of improved power supply on network availability and efficiency following the completion of two additional generators at Hwange Power Station.

The Zimbabwe Stock Exchange (ZSE) listed mobile network operator is the country’s largest mobile telecommunications company.

Hwange Power Station unit 7 came online in March 2023, adding  300MW to the national grid while the full synchronisation of generator number 7 was achieved last month, adding a similar amount of power to the national grid.

Zimbabwe experienced severe electricity supply challenges from the second half of last year and the first quarter of 2023 due to limited output from Hwange’s aged thermal power system and low water levels in Lake Kariba.

The resultant power outages negatively impacted mobile network availability, causing call drops, slow internet speeds, and intermittent connectivity.

Electricity is a critical enabler in the telecommunications sector given that shortages impede operations while increasing running costs due to the need to adopt alternative power sources.

The Government has thus been seized with interventions to increase production and ensure constant supply.

An investment of US$1, 4 billion was made to increase production at Hwange, which had an installed capacity of 920MW, but produced far below its capacity due to aged equipment, which caused frequent breakdowns.

 “The upgrade of Hwange Power Station unit 7 added 300MW of power to the national grid which resulted in an improvement of network availability.

“We, however, continued to invest in alternative and renewable power solutions in a bid to ensure quality network reliability at all times,” said Charles Banda, EWZ group company secretary in the firm’s trading update for the quarter to May 2023.

Hwange Power Station units 7 and 8 expansion project is one of the Second Republic‘s signature projects aimed at boosting power generation to support economic transformation in line with the National Development Strategy 1.

 To minimise the impact of unplanned and sometimes lengthy power outages, telecommunication players resorted to alternative sources of energy, mainly diesel generators, which increase running costs.

Rising operating costs resulted in telecoms operators demanding frequent tariff adjustments, which weighed on consumers.

Mobile network operators have been intensifying the implementation of green energy projects to curb elevated operating costs emanating from rising energy costs mainly from the use of diesel.

Prolonged load-shedding remains a challenge to operational efficiency, impacting the overall quality of service and raising the cost-of-service provision, the industry is therefore investing heavily in alternative power sources

In terms of performance in the period under review, EWZ posted a 137 percent revenue increase in inflation-adjusted terms, ahead of the same period in 2022 albeit with exchange losses which remained an imposing challenge.

According to EWZ, the business managed to upgrade 30 percent of Harare and 70 percent of Bulawayo base station sites and this has seen an increase in the speed and volume of data consumed by customers.