RBZ’s High Data Pricing Solution Will Make It Worse

The Reserve Bank of Zimbabwe (RBZ) is coming to make your data bundles more expensive.

The central bank has mandated ‘fair pricing’ for internet data packages, presumably to address complaints about mobile operators favoring USD over Zimbabwean dollars (ZiG).

Mobile network operators have been accused of offering promotions for internet data exclusively in USD, neglecting ZiG, which has apparently raised concerns among ‘stakeholders.’

To be honest, it’s not just an accusation—it’s reality. Some bundles and packages are only available in USD for obvious reasons.

RBZ is collaborating with POTRAZ and TOAZ to ensure compliance with the new pricing structure, with the Financial Intelligence Unit (FIU) overseeing adherence to ensure customers can buy data in their preferred currency.

That would all be fine if the ZiG was widely accepted by the public and internationally. The reason operators want USD is the same reason we all prefer the greenback.

Mobile operators also genuinely need USD for equipment and software—you’re not buying telecommunications gear at Willowvale.

Effect of the ‘fair pricing’ directive

We will see some of these promotional packages disappear, while others will become more expensive.

That’s because, although the government insists the USD-ZiG exchange rate is one way, the streets say otherwise.

So, if mobile operators use the official exchange rate to convert USD packages to ZiG, they would be much cheaper in ZiG.

This would lead the ever-clever Zimbos to “burn” their USD to buy the same bundles in ZiG, dumping the unwanted ZiG onto mobile operators.

Then, with less USD revenue, mobile operators would have to rely even more on the RBZ for forex it doesn’t have.

Alternatively, mobile operators could raise their USD prices so that the ZiG values aren’t too low, which would also lower USD sales.

Any Zimbo currently living in the teapot knows this is not rocket science—it’s exactly what happened to big retailers.

So, while it sucks that those earning in ZiG can’t access certain USD-only packages, trying to fix that the way RBZ wants will only make things worse.

Something needs to be done—data is too expensive for economy-ravaged Zimbos—but this ain’t the solution.