Unaudited Abridged Financial Resultsfor the half year ended 31 August 2016

Look up Zimbabwe,the future is bright.

Econet Wireless Zimbabwe Limited: Incorporated in the Republic of Zimbabwe. Company registration number 7548/98 | Directors: Dr. J. Myers (Chairman)*, Mr. S.T. Masiyiwa, Mr. R. Chimanikire, Mr. K.V. Chirairo, Mr. M. Edge*, Mr. C. Fitzgerald*, Mr. G. Gomwe*, Mr. D. Mboweni, Mrs. T.P. Mpofu*, Ms. B. Mtetwa*, and Mrs. S. Shereni*. *Non Executive | Group Company Secretary: Mr. C.A. Banda | Registered Office: Econet Park, 2 Old Mutare Road, Msasa, Harare, Zimbabwe. E-mail: info@econet.co.zw Website: www.econet.co.zw | Registrars and Transfer Secretaries: First Transfer Secretaries (Private) Limited, 1 Armagh Avenue, Eastlea, Harare, Zimbabwe | Auditors: Deloitte & Touche (Zimbabwe), West Block, Borrowdale Office Park, Borrowdale Road, P.O. Box 267, Harare, Zimbabwe.

Unaudited Abridged Financial Resultsfor the half year ended 31 August 2016

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the half year ended 31 August 2016

CHAIRMAN’S STATEMENT TO SHAREHOLDERS

1. General information The main business of Econet Wireless Zimbabwe Limited (“the Group”) is mobile

telecommunications and related value added services. The abridged consolidated financial results incorporate the subsidiaries and associates.

These financial statements are presented in United States dollars being the currency of the primary economic environment in which the Group operates.

2. Accounting policies The Group reports in terms of International Financial Reporting Standards (“IFRS”). The principal

accounting policies of the Group have been applied consistently in all material respects with those of the previous year.

3. Statement of compliance The Group’s financial results which are summarised by these abridged consolidated financial

results have been prepared in compliance with International Financial Reporting Standards (IFRS) promulgated by the International Accounting Standards Board (IASB), which include standards and interpretations approved by the IASB as well as the Standing Interpretations Committee (SIC).

The abridged consolidated financial results do not include all the information and disclosures required to fully comply with IFRS and should be read in conjunction with the Group’s annual financial statements as at 29 February 2016 which were availed on the Company’s website and is also available at the Company’s registered office.

Unaudited Unaudited 31 August 31 August

2016 20154. Depreciation and amortisation of property, plant and equipment and intangible assets $63.8 million $64.7 million

5. Commitments for capital expenditure Authorised by the directors and contracted $6.1 million - Authorised by the directors but not contracted $31.4 million $27.2 million The capital expenditure is to be financed out of the Group’s own resources and existing facilities.

6. Earnings per share Earnings Profit for the year attributable to ordinary shareholders $15.1 million $23.8 million

Number of shares Weighted number of ordinary shares for purposes of basic and diluted earnings per share calculation 1,423,677,054 1,541,074,812

Basic and diluted earnings per share (US cents) 1.1 1.5

7. Borrowings The company and its subsidiaries were in compliance with all requirements arising from the

multi-creditor facility as at 31 August 2016.

8. Contingent liabilities There is no material changes to contingencies from those that were communicated in the last

annual financial statements.

9. Events after reporting date There have been no significant events after reporting date. We continue to monitor the impact of

the changing economic conditions on the business.

10. Going concern The Directors have assessed the ability of the Company and subsidiaries to continue operating as

a going concern and believe that the preparation of the consolidated financial statements from which these abridged financial results are derived on a going concern basis is appropriate.

INTRODUCTION Econet maintained its market leadership, anchored on strong brands, innovation and resilience

in an environment characterized by weak economic fundamentals. We continue to make

strides in bringing added convenience to our valued customers through innovative products

and services and exceptional partnerships. We launched a refreshed logo in July 2016. The

refreshed brand image was supported by a successful communication campaign themed “Look Up Zimbabwe, the Future is bright.” We believe that, despite the current challenges being

experienced in the country, the future of Zimbabwe is bright!

ENVIRONMENTAL OVERVIEWThe depletion of the country’s foreign currency reserves, evidenced by a recurrent balance

of payments deficit, has made it difficult for all companies to make payments to foreign

suppliers of capital, goods and services. As a result, we have been unable to make certain debt

repayments on time, notwithstanding that cash was available in our local bank accounts. This

situation is expected to persist. We have engaged our lenders and continue to explore mutually

acceptable solutions. The Company has managed to sustain business operations in a difficult

operating environment.

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) suspended

all promotions by the industry. Promotions are temporary price plans that reward customers

for certain behavior, which are offered by operators to differentiate their products. POTRAZ

has also promulgated new Quality of Service Regulations into law. Whilst the Company has

strived to meet these standards, the ongoing liquidity challenges have hampered our efforts

to continuously invest to meet increasing capacity demands. Consequently, our capital

expenditure intensity decreased from 16.6% to 5.1%.

CONTRIBUTION TO THE ECONOMYEconet has directly and indirectly provided employment to over 50,000 people, including

EcoCash agents, airtime dealers, retailers of devices and other telecommunications related

service providers. Econet pays US 23 cents of every dollar that it collects from its customers

in Value Added Tax (VAT), Excise Duties and Licence fees as well as in contributions to the

Universal Services Fund. This is in addition to paying corporate taxes on profits, import

duties, other levies to Councils and other statutory bodies. Cumulative taxes and levies paid

to Central Government and statutory bodies since dollarization now stand at US$ 1.2 billion.

The Company was recognized for being the highest contributor to VAT for the tax year ended

31 December 2015.

Our mobile financial and micro-insurance services, EcoCash and EcoSure, have made significant

contributions to financial inclusion by allowing millions of people, who were previously

excluded, access to financial services. As liquidity challenges have escalated since January 2016,

EcoCash has become an important method of payment for goods and services.

OPERATIONS REVIEWThe business continued its focus on growing revenue, particularly from data and mobile

financial services, which registered double digit growth of 11% and 22% respectively. Financial

services revenue contribution constituted 34% of total Group revenue, and this validates our

strategy, which we commenced a few years ago, to grow non-voice revenues.

We successfully concluded the network modernization project, which resulted in the

deployment of over 400 new LTE sites and upgrades to over 250 3G sites. An additional 88

new Wi-Fi coverage sites were made country wide. In terms of coverage, speeds and user

experience, the Econet network remains unrivalled in its performance. Customers can now

enjoy enhanced Internet experience through increased data capacity and performance. Data

billing capacity was upgraded to cater for increased data traffic and complexity as well as to

offer quality user experience and value for money to our customers.

Partnerships are key to the growth imperatives of EcoCash. In view of the need to increase

remittances and complement efforts by Government to generate foreign currency for the

country, we entered into partnerships with various Mobile Transfer Agencies (MTA’s) including

MoneyGram, Western Union and WorldRemit. EcoCash now has 9 partnerships with various

MTAs. Our EcoCash platform continues to grow supported by a wide network of agents and

merchants that accept EcoCash as a mode of payment.

Our micro insurance product, EcoSure, offers the most affordable funeral cover, is widely

acknowledged as the fastest growing insurance product in Zimbabwe. EcoSure won an award

for being the most innovative product (Life assurance) in Southern Africa. The system that it

runs on earned Econet the best technical company award at the Micro insurance forum held

in July 2016. EcoSure’s subscribers have surpassed the 1 million mark spurred by the newly

introduced burial society product, which is transforming communities.

FINANCIAL REVIEWRevenue for the period under review was $301 million compared to $323 million for the same

period last year. Profit after taxation (PAT) was $14.9 million compared to $23.8 million for the

year. Profitability was affected by the decline in revenues as a result of the difficult economic

environment. We have, therefore, continued to focus on cost reduction in order to protect

margins and profitability. Although the cash position continues to be healthy, the NOSTRO

funding constraints being experienced by all local banks have adversely affected our ability to

meet US Dollar denominated commitments on time. This situation is pervasive to all sectors

of the economy.

CORPORATE SOCIAL INVESTMENTThe business has provided assistance to over 200 000 orphaned and vulnerable children across

the country, since inception. The business continues to extend educational support to talented

children at various educational institutions.

OUTLOOKThe Company has established a good reputation in the capital markets. Through a proactive

approach in managing the expectations of our partners, we continue to protect relationships

and reputation. We have a robust business, an adaptable operating model and a culture of

innovation, which has allowed the business to thrive, even in the most difficult of times. Our

established brand reputation, strong products and services, passionate teams and the support

of our customers will continue to inspire us to change the world.

DIVIDENDDue to the overall prevailing economic environment, the Board has decided to delay

consideration of a dividend to the end of the financial year.

APPRECIATIONI wish to extend my appreciation to all our customers, staff, shareholders, regulators and

strategic partners and my fellow board members for their unwavering support for our business.

DR. J. MYERSCHAIRMAN OF THE BOARD

25 OCTOBER 2016

NOTES TO THE UNAUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTSFor the half year ended 31 August 2016

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(All figures in US$ 000)

Unaudited 31 August

2016

Unaudited 31 August

2015

Revenue 301,513 323,001

Earnings before interest, taxation, depreciation and amortisation

105,854

122,535

Depreciation, amortisation and impairment (63,753) (64,665)Profit from operations 42,101 57,870 Finance income 506 1,917 Finance costs (15,225) (21,232)Profit before taxation 27,382 38,555 Taxation (12,417) (14,747)Profit for the half year 14,965 23,808

Other comprehensive incomeOther comprehensive income net of tax (231) (329)Total comprehensive income for the half year 14,734 23,479

Profit for the half year attributable to:-Equity holders of the parent 15,283 24,112 Non-controlling interest (318) (304)Profit for the half year 14,965 23,808

Total comprehensive income for the half year attributable to:-Equity holders of the parent 15,052 23,783 Non-controlling interest (318) (304)Total comprehensive income for the half year 14,734 23,479

Earnings per shareBasic and diluted earnings per share (cents) 1.1 1.5 Number of shares in issue 1,640,021,430 1,640,021,430 Weighted average number of shares in issue 1,423,677,054 1,541,074,812

(All figures in US$ 000)

Unaudited31 August

2016

Audited29 February

2016

ASSETSProperty, plant and equipment, intangible assets and goodwill

785,776 834,870

Other non-current assets 48,611 44,751 Deferred taxation 9,136 10,897 Financial instruments - long term 55,019 65,625 - short term 285,022 228,396 Other current assets 6,766 12,365 Total assets 1,190,330 1,196,904

EQUITY AND LIABILITIESEQUITYShare capital and share premium 40,764 40,764 Retained earnings 615,637 614,225 Other reserves 3,246 2,546 Attributable to equity holders of the parent 659,647 657,535 Non-controlling interest 4,044 4,362 Total equity 663,691 661,897

LIABILITIESDeferred taxation 103,387 112,221 Other non current liabilities 3,190 3,487 Financial Instruments:Long-term interest-bearing debt 77,585 112,343 Short-term interest-bearing debt 103,609 110,735 Other financial instruments - short term 210,068 181,530 Other current liabilities 28,800 14,691 Total liabilities 526,639 535,007

Total equity and liabilities 1,190,330 1,196,904

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 August 2016

(All figures in US$ 000)

Unaudited 31 August

2016

Unaudited31 August

2015

Cash generated from operations 130,227 134,188 Income tax paid (16,336) (12,706)

Net cash generated from operations 113,891 121,482

Investing activitiesAcquisition of property, plant and equipment and intangible assets (15,361)

(45,650)

Net acquisition of financial instruments 5,342 (7,840)

Net cash used in investing activities (10,019) (53,490)

Cash flows from financing activities

Financing costs paid (12,214) (17,525)

Dividend paid (7,093) (4,834)

Share buy-back - (22,261)

Proceeds from borrowings 27,044 19,404

Repayment of borrowings (68,190) (38,235)

Net cash flows (used in)/from financing activities (60,453) (63,451)

Net increase in cash and cash equivalents 43,419 4,541

Cash and cash equivalents at the beginning of the year

99,715

95,239

Cash and cash equivalents as at 31 August 143,134 99,780

Comprising:Short-term investments - 512 Bank balances and cash 143,134 99,268 Cash and cash equivalents as at 31 August 143,134 99,780

UNAUDITED CONSOLIDATED STATEMENT OF CASHFLOWS For the half year ended 31 August 2016

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the half year ended 31 August 2016

(All figures in US$ 000)

Share capital and

share premium

Retainedearnings Other

Attributable to equity

holdersof the parent

Non-controlling

interest Total

Balance at 1 March 2015 40,764 614,112 5,894 660,770 4,525 665,295 Profit for the period - 24,441 - 24,441 (304) 24,137 Other comprehensive loss for the period - -

(329) (329) -

(329)

Sale of treasury shares - (22,261) - (22,261) - (22,261)

Dividend - (4,981) - (4,981) - (4,981)

Other - 1,258 (1,589) (331) - (331)

Balance at 31 August 2015 40,764 612,569 3,976 657,309 4,221 661,530

Balance at 1 March 2016 40,764 614,225 2,546 657,535 4,362 661,897

Profit for the period - 15,283 - 15,283 (318) 14,965

Other comprehensive loss for the period -

-

(231)

(231) -

(231)

Dividend - (12,940) - (12,940) - (12,940)Reclassification - (931) 931 - - -

Balance at 31 August 2016 40,764 615,637 3,246 659,647 4,044 663,691

31 August 2016 31 August 2015

(All figures in US$ 000)

Cellular Network

Operations Other

segments Net

Eliminations Total

Cellular Network

Operations Other

segments Net

Eliminations Total

Revenue & Net interest income (from external customers)

237,279

64,234 -

301,513

268,428

54,648 (75)

323,001

Depreciation, amortisa-tion and impairment

(60,142)

(3,611) -

(63,753)

(61,728)

(2,937) -

(64,665)

Segment profit 6,267 8,472 226 14,965 12,109 11,048 651 23,808

Segment assets 1,156,703 604,623 (570,996) 1,190,330 1,210,832 522,839 (489,647) 1,244,024

Segment liabilities 417,746 560,720 (451,827) 526,639 473,815 472,369 (363,691) 582,493

This is a summarised segment report showing the Group’s major segment, Cellular network operations and other segments. Included in “Other” are the results of the following segments: Financial Services, Insurance, Beverages, Investments and Administration.

SUMMARISED UNAUDITED SEGMENT INFORMATION