Harare – Econet Wireless has asked its local and international suppliers to cut the prices of their supplies to the company by more than 15%.
The telecoms firm said suppliers who failed to slash their prices risked blacklisting.
The company said 7 July: “The measures, which are part of Econet’s cost-cutting drive, affect all suppliers of goods and services.
“Any supplier who sells goods or services to Econet Wireless Zimbabwe, must cut prices by at least 15% or will be blacklisted as a supplier with effect from the end of July.”
Econet said a task force led by the head of Econet Wireless Global, Tracy Mpofu, who is based in South Africa, was working at the Zimbabwean unit to ensure the successful implementation of a major cost-cutting exercise.
Just last month, the firm cut the salaries of its staff by 20%.
Econet Wireless Zimbabwe CEO Douglas Mboweni confirmed the new measures, saying: “We ourselves were forced to lower our prices by 40%. So if our suppliers don’t cut their own prices, we will go out of business. We do not think 15% is too much to ask others for.”
The group’s wide cost-cutting initiatives were expected to go on for several months. Even subsidiaries of the company, such as Steward Bank and Mutare Bottling Company, have also been ordered to do the same.
Zimbabwe’s mobile telecommunications companies were forced to reduce their tariffs by close to half earlier this year following a government directive.
ANA