We are delighted to present the first edition of the PwC Zambia Telecommunications Report.
The telecommunications sector plays a vital role in Zambia’s development, not only because it enables communication between individuals and businesses but also because it is a powerful driver of economic activity through mobile financial services.
Zambia’s telecommunications industry has undergone significant transformation in recent years, fuelled by technological advancements and supported by targeted government initiatives. This report analyses the current state of the ICT sector, with a focus on the three largest mobile network operators in Zambia, highlighting key trends and emerging technologies, as well as ongoing challenges and future opportunities for the industry.
The insights presented here are intended for a wide range of stakeholders—policymakers, investors, service providers and consumers—and offer a clear view of the sector’s progress, its growth potential and the areas that require more attention. We are extremely grateful to Airtel Networks, MTN Zambia and Zamtel for collaborating with us in the planning and execution of our analysis and subsequent report preparation. We are also thankful for input from the sector’s regulator, the Zambia Information and Communication Technology Authority, and other key stakeholders, including the Ministry of Technology and Science, the Ministry of Finance and National Planning, the Zambia Revenue Authority, the Zambia Statistics Agency and the Bank of Zambia.
Finally, a special thank you to the PwC team who worked so diligently to deliver this publication.
Introduction
The information and communications technology (ICT) sector grew significantly during the Covid-19 pandemic. Increased demand for digital services led to a rise in mobile subscriptions, domestic calls, internet subscriptions and usage as people adapted to partial lockdowns and social distancing.
Government has made a concerted effort to encourage the use of ICT as a tool for economic growth and social inclusion in Zambia in recent years. Steps taken by the government to support this include establishing the Ministry of Technology and Science in 2021 and the launch of the Smart Zambia Institute, a division under the Office of the President. The Smart Zambia Institute has been pivotal in expanding the use of ICT, with substantial investments made in ICT infrastructure such as data centres, a computer assembly plant, ICT training centres and the Smart Education programme. These developments have been complemented by the expansion of broadband access and improved connectivity to international submarine cables, resulting in more affordable fixed-line and mobile services for end-users.
Increased availability of devices, especially smart ones, has also contributed significantly to the growth in the use of services provided by mobile phone companies.
Report methodology
To gather insights for this report, PwC Zambia conducted a survey targeting the three largest mobile network operators in Zambia: Airtel Networks, MTN Zambia and Zamtel. Each operator received a formal information request covering a range of quantitative and qualitative questions relevant to the mobile telecommunications and mobile money sectors. The data collected included but was not limited to:
- Subscriber numbers (both mobile and mobile money users).
- Volume and value of mobile money transactions.
- Market share estimates.
- Tax contributions (including corporate tax, value added tax and sector-specific levies).
- Perceptions of key risks and opportunities facing the industry
All three companies responded to the survey and provided the requested information. In addition, PwC Zambia conducted followup interviews with senior management at each organisation to clarify responses, validate data points and explore emerging themes in greater depth.
This mixed-methods approach ensured both quantitative accuracy and qualitative context, enabling a more comprehensive understanding of the sector’s current dynamics and future outlook.
We also spoke to key industry stakeholders through interviews and obtained data for this study from them. The main stakeholders we engaged with included:
- Zambia Information and Communication Technology Authority (ZICTA) • The Ministry of Technology and Science
- The Ministry of Finance and National Planning
- The Zambia Revenue Authority (ZRA)
- The Zambia Statistics Agency
- The Bank of Zambia
