Zimbabwe Economic News Today: Falling inflation, Econet grows, Telecel eyes expansion, the 100BN USD economy pipe-dream

Zimbabwe Inflation continues to decline

The NewsDays reports that Zimbabwe’s consumer inflation continued on a downward trend, closing the month of August at 3,63% year-on-year from 3,94% the previous month.

Figures released by the Zimbabwe National Statistical Agency on Monday showed that on a month-on-month basis inflation was at 0,18% from 0,23%.

According to an African Development Bank monthly economic report for August, prevailing inflationary pressures emanate from the poor harvest in 2012, demand for rental accommodation and increasing utility prices.

Econet customer base surges

Also, Econet Wireless Zimbabwe (EWZ) says its customer base has surged to over seven million connected users from 6,4 million in February.

The company said the subscriber base had the potential to rise further to 8,5 million customers. In a statement yesterday, EWZ said after a slow start due to capacity constraints, which had resulted in shortages of Buddie lines, the number of connected users had grown to 7,1 million.

Zimbabwe's largest telecoms operator by subscriber base said it had increased capacity significantly and had mopped up the backlog in demand. Wednesday 19 September 2012, Newsday

Telecel targets 200 new base stations

Meanwhile the country’s second biggest telecommunications provider, Telecel Zimbabwe will install more than 200 new base stations by next December under an expansion
programme targeted at ensuring the network covers 85 percent of the country.

The project, following a US$70 million capital injection from new shareholders Vimpelcom, is estimated to cost between US$30 million and US$40 million.
Chief executive Mr Francis Mawindi told a media briefing yesterday that Telecel was on an expansion drive that would increase coverage to 90 percent of the country over the next 12 months.

“By the end of the year, we expect to have completed the installation of base stations at more than 200 new sites, bringing to more than 575 the number of base station sites we have,” he said. Wednesday 19 September 2012, Herald

Chinese firm proposes US$3,5bn power plant

A CHINESE firm, Guangdong Bureau of Coal Geology, plans to invest at least US$3,5 billion in building a 1 200- megawatt thermal power plant in Zimbabwe, an official has said. “We came here to observe and study the possibility of building a thermal power plant,” he said this week.

“Our proposed budget is about US$3,5 billion for a 120 million watts plant.”

CNACG director general Mr Mu Yong was speaking after his delegation met officials from the Ministry of Economic Planning and Investment Promotion in Harare yesterday.
Established in 1962, CNACG has implemented various power projects worldwide.

Zimbabwe has launched a National Energy Policy which seeks to raise power output to 10 000 megawatts to close its supply gap. Wednesday 19 September 2012, Herald

US$100bn economy attainable

THE quest for a US$100 billion economy by 2040 remains viable and could be attained if the current momentum is maintained, KM Financial Solutions chief executive Mr Kenias
Mafukidze has said. With the Gross Domestic Product estimated at just below US$10 billion, the US$100 billion by 2040 target would require the economy to grow by at least 10 percent a year. But with the growth projections for this year being revised downwards to 5,6 percent, and with no end in sight to the liquidity challenges facing the economy, the US$100 billion economy was beginning to look like another pipe dream. Tuesday, 18 September 2012, Herald