Econet’s resilience pays off

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FOLLOWING Econet’s feat in the Top Companies Awards, The Financial Gazette’s News Editor Kuda Chideme (KC) sat down with Econet Wireless Group chief executive, Douglas Mboweni (DM), to learn the company’s secret to success. Below are excerpts of the interview:

KC: Congratulations on your achievement. How did you manage to navigate this difficult year?
DM: Thank you very much. It has been a tough season for most companies not only in Zimbabwe, but across the world. And, as an organisation, we are delighted that we have been awarded the top position in the Top Companies Awards again this year. I thank God for this feat, which we do not take for granted. And I want to express my appreciation to The Financial Gazette and Old Mutual for recognising our efforts.

No doubt we would not have achieved this level of performance without the grace and help of God, who enables ordinary men and women to do extraordinary things. I want to acknowledge the wisdom and guidance of our founder and group chairman, Mr Masiyiwa, and the very strong support my management team and I receive from our board. And then of course our loyal customers, without whom our business would not exist. Our customers mean everything to us, especially during these trying times, and we will continue to work hard and to innovate in order that we continuously meet their evolving needs.
Our staff and management team, that have had the diligence to master the art of execution, made this possible, even in very challenging times, and for that I am most grateful.
KC: How much of an impact has the pandemic had on your business?
DM: The sudden and unexpected onset of the Covid-19 pandemic in 2020 changed the world in ways that we could never have conceived. The need to ensure that businesses have effective digital strategies and capabilities was evident as national lockdowns across the world disrupted our normal day-to-day lives.
To protect the health and safety of our staff, customers and those we engage in conducting our business, we shifted the way we work and operate our business to adapt to the physical distancing requirements that came into effect as part of national efforts to contain the spread of the virus. Our digital platforms were put to the test and proved, resoundingly, to be robust.
In place of our physical contact centres we had to develop remote communication and sales channels for our customers. We accelerated our human resources capabilities and are transforming our policies to support remote working, video streaming and many aspects to ensure our business continuity. All this has been made possible by our past investment in resilient network infrastructure, which has positioned us to be the digital connectivity partner of choice.
KC: What has been the most difficult part of this period?
DM: Despite the numerous challenges facing businesses in Zimbabwe, such as limited foreign currency and disruptions in power supply that continue to put a significant strain on our ability to provide uninterrupted excellence in service, we kept the country connected. Our mitigation strategies, which include moving to remote monitoring and operation of our network, as well as reducing our reliance on power from the grid through our group renewable energy outfit DPA, were critical to our success.
However, low tariffs and accumulated foreign obligations in the telecommunications sector in general continue to be an albatross and a huge burden in addressing the capitalisation requirements for all operators in our industry. This, of course, is a matter we continue to engage our stakeholder partners about, and we remain hopeful that we will find a mutual solution that ensures the industry continues to offer the essential service it offers the nation.

KC: What have you learnt about yourself and your team during this period?
DM: As former United States President John F Kennedy famously suggested, out of crises can emerge new and incredible opportunities, particularly if traditional approaches and paradigms are questioned and challenged. The coronavirus pandemic provided us, at Econet, with a big lesson in agility as we had to be agile to adapt and respond quickly to changing times. This situation made us realise how important it is to be agile, and to be comfortable with change such that we are willing to shift gears whenever necessary.
KC: On the operational side of things, we see that the data segment continues to be an important aspect of the business, especially going forward. Any specific plans you have there?
DM: The increasing digitalisation of the economy necessitates an increase in faster data infrastructure. Increased access to data services is necessary to support, among other critical imperatives, online education, health and business digitalisation initiatives. Although we now have 90 percent of the population covered by our data-capable assets across the country, we are continuing to invest in 4G/LTE infrastructure that will provide faster upload and download speeds so that our customers can enjoy high speed applications, whether they are lifestyle based, business enabling or just for entertainment.

KC: The operating environment has obviously changed because of the pandemic. What policy issues would you like to see addressed by the regulator?
DM: Zimbabwe’s Internet penetration rate remains low as approximately 22 percent of the devices on our network that attempt to access data services are “feature” phones, with low data handling capacity.
As such, we are working closely with the relevant stakeholders on proposals to review the duty regime for mobile devices, so as to enhance the rapid adoption of digital services across the economy. We are optimistic that the government, which also acknowledges the benefits of a digitised economy, will work with us to ensure that Zimbabweans are not left behind on the digital transformation journey.
KC: Going forward what plans do you have for the business?
DM: Over the last two decades, the company has introduced products and services that have harnessed the power of mobile technology and innovation to transform the lives of people in Zimbabwe. As we go into the next decade, we are shifting our business model to position ourselves to drive digital transformation by delivering digital solutions across the board. The next few years will be pivotal in that transformation, which will see us transition from a communications service provider to a full digital service provider.