Mutapa Fund Pledges Support for NetOne’s Digital Transformation

The Mutapa Investment Fund has reaffirmed its commitment to supporting NetOne’s transformation into a commercially sustainable and digitally driven telecommunications provider, despite financial setbacks recorded in the past year.

Delivering the shareholder’s remarks at the company’s 2024 Annual General Meeting (AGM) held in Harare, a representative of the Fund speaking on behalf of Chief Executive Officer Dr. John Mangudya acknowledged the operational progress made by NetOne, Zimbabwe’s second-largest mobile network operator, amid a challenging economic environment.

“While the journey has not been without its challenges, it is encouraging to see continued momentum in strategic execution and operational resilience,” the Fund stated.

NetOne recorded strong growth in data revenue and made notable progress in expanding its network footprint, including the rollout of new LTE sites and upgrades to digital customer platforms. However, the company posted a net loss for the year, mainly attributed to exchange rate-induced losses.

Despite the loss, shareholders highlighted several key achievements, including:

• Expansion of ICT infrastructure

• Introduction of digitalised customer engagement channels

• Implementation of corporate social responsibility initiatives in education, health, and environmental protection

Looking ahead, the Mutapa Investment Fund outlined four major strategic imperatives to guide NetOne’s future:

1. Commercial Sustainability
A strong emphasis was placed on financial discipline, cost rationalisation, and improved revenue assurance to restore the company’s going-concern status. The Fund also pledged to work with the Ministry of Finance to address legacy debt burdens that continue to weigh down the balance sheet.

2. Network Expansion and 5G Readiness
The shareholder urged the company to close coverage gaps, enhance indoor data quality, and accelerate the deployment of next-generation technologies, including 5G, particularly in high-demand and underserved areas.

3. Digital Innovation and Cloud Services
NetOne was encouraged to anchor innovation in scalable digital platforms, with the launch of cloud-based and Internet of Things (IoT) services aimed at meeting the evolving needs of enterprise clients and public institutions.

4. Governance and Accountability
The Fund called for strengthened oversight by the Board and greater executive discipline in executing strategies. It emphasised the importance of performance-based management systems to improve efficiency and transparency.

Describing NetOne as a “strategic asset in Zimbabwe’s digital landscape”, the Mutapa Investment Fund expressed optimism about the company’s future and its ability to support the country’s digital transformation goals.

“The growth in revenue, expansion in data usage, and operational improvements show that the company is on a promising trajectory,” the Fund said.

The statement concluded with a call for collaboration among stakeholders, including regulators, partners, and customers, to ensure NetOne fulfils its national mandate of enhancing connectivity and driving inclusive economic growth through technology.

Formerly the Sovereign Wealth Fund of Zimbabwe, the Mutapa Investment Fund manages key state-owned enterprises and assets on behalf of the government. Its mandate includes ensuring long-term value creation, commercial viability, and good governance in the public investment portfolio.