Audited Abridged Financial Resultsfor the year ended 28 February 2017

A robust business model driven by our pioneering and innovative spirit

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. M. Bennett*, Mr. R. Chimanikire, Mr. K.V. Chirairo, Mr. M. Edge*, Mr. G. Gomwe*, Mr. D. Mboweni, Mrs. T.P. Mpofu*, Ms. B. Mtetwa*, Mr. H. Pemhiwa*, 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.

Audited Abridged Financial Results for the year ended 28 February 2017ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 28 February 2017

CHAIRMAN’S STATEMENT TO THE SHAREHOLDERS

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

telecommunications and related value added services. The abridged consolidated financial results incorporate the Company’s subsidiaries and associate (“the Group”).

These abridged financial results 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 with no significant impact arising from new and revised IFRS applicable for the year ended 28 February 2017.

3. Audit Opinion These financial results should be read in conjunction with the complete set of financial

statements for the year ended 28 February 2017, which have been audited by Deloitte & Touche in accordance with International Standards on Auditing. An unmodified audit opinion has been issued thereon. The auditors’ report includes a section on key audit matters. These include; provision for impairment losses of financial assets, revenue recognition, recognition of deferred tax asset, compliance with loan covenants, valuation and impairment of goodwill as well as pending tax cases, and contingent liabilities. Details on key audit matters and how they were addressed are contained in the auditors’ report which is available for inspection at the Company’s registered office.

4. Statement of compliance The Group financial results which are summarised by these abridged consolidated financial

results have been prepared in compliance with 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 of 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 28 February 2017 which will be distributed at the Company’s annual general meeting and is available for inspection at the Company’s registered office.

Audited Audited 28 February 29 February

2017 20165. Depreciation and amortisation of property, plant and equipment and intangible assets $138.2 million $136.6 million

6. Commitments for capital expenditure Authorised by the directors and contracted $40.8 million $18.6 million Authorised by the directors but not contracted $33.4 million $1.5 million Total $74.2 million $20.1 million The capital expenditure is to be financed out of the Group’s own resources and existing facilities.

7. Earnings per share Comprehensive income for the year attributable to ordinary shareholders $38.0 million $39.6 million

Number of shares Weighted number of ordinary shares for the purposes of basic and diluted earnings per share calculation 1,422,437,009 1,551,431,509

Basic and diluted earnings per share (US cents) 2.7 2.6

8. Borrowings As a result of the foreign payments challenges, the Company embarked on a capital raising

exercise through a rights offer in order to discharge all its foreign loan obligations. The rights issue was concluded on the 31st of March 2017.

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

annual financial statements. 10. 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. 11. Going concern The directors have assessed the ability of the Company and its 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.

INTRODUCTIONOur robust business model, which is built on the pillars of Telecommunications, Media and Technology (“TMT”), is driven by our innovative and pioneering spirit. Despite a challenging economic and operating environment, our innovation, effective market segmentation and solid infrastructure, has enabled us to maintain a leading position in the market. The strong focus on revenue diversification, stringent cost management as well as developing a corporate culture of disciplined execution and accountability has helped us to limit both a revenue and margin decline, while continuing to maintain our customer centric focus.

Consistent with our pioneering spirit, we launched the largest capital raising exercise on the Zimbabwe Stock Exchange in the history of the local securities exchange. Through this transaction, we raised sufficient capital to retire our foreign long-term bank debt. Our rights offer was one of the largest transactions in the Africa, to date.

The Government introduced a further 5.0% excise duty on airtime revenues. For every US$1 that we collect 28.8 cents is paid to Government and its statutory bodies in the form of VAT, excise duties, levies and licence fees. This is in addition to paying for a 20 year operating licence in 2013, at a cost of US$ 137.5 million. Total payments to Government and statutory bodies since dollarisation, in 2009 exceed US$ 1.3 billion.

OPERATING REVIEWThe cellular network operations business segment that largely comprises data and voice revenues contributes about 60% of our business revenues. Whilst voice revenues in the industry have continued to decline as consumers switch to data applications for communication, our position in the market remains strong. All operators are faced with the challenge of migrating from being voice driven businesses to data and content provision. This is happening against the backdrop of difficult economic conditions making it harder to generate sufficient capital from the current revenue streams to invest in new businesses of the future.

Our content and media services businesses are in their formative stages. We envisage that our strategy to move the business from being a provider of infrastructure to have a strong market presence in content provision will yield dividends in the medium term. Our new capital investments will increasingly focus on growing our data and content services by investing in increased data coverage, quality, capacity and speeds to better serve our customers.

Our financial technology pillar of the business is anchored on our banking services, mobile money and mobile insurance platforms. EcoCash, our mobile money service increased its level of transactions as mobile money platforms became an important alternative to cash transactions. This resulted in our customers preferring to pay money directly from their wallet to retailers and other merchants without performing a cash-out transaction. EcoCash was awarded recognition as the best mobile payment solution at the Mobile World Congress Global Mobile Awards for 2017 in Barcelona, Spain.

EcoSure, our mobile insurance product increased its active subscriber base by over 100%. Steward Bank Limited, a wholly owned subsidiary, has seen a rapid transformation over the past three years since being acquired by the Econet Group. It has adopted a technology led strategy which enabled it to deliver simplified and inclusive banking services. The bank has grown from strength to strength, registering a 24% increase in revenue in the past financial year.

FINANCIAL REVIEWRevenue for the year under review declined by 3.0% to US$ 621.7 million. The telecommunications industry has continued to experience a decline in revenues resulting from a deterioration of the economic environment. EBITDA declined to US$ 224.0 million, from US$ 238.4 million, a decline of 6.0%. However, even under these challenging conditions, at 36.0%, the EBITDA margin remains competitive.

Our data and mobile financial services businesses now contribute about 32% of our revenues, from about 14% in the first half of our financial year ending 28 February 2015. This demonstrates how we have been creative to recalibrate the business, cognisant of the challenges faced globally by operators in sustaining a growth in voice revenues.

In an environment with limited foreign currency we have continued to explore ways in which to address these challenges. One of these being the recently concluded Rights Offer. Our Capital Expenditure (“Capex”) to revenue ratio declined to 5%. Generally Capex to revenue ratios in our industry are above 10% and the inability to continue investing at the appropriate level may delay our ability to optimally deliver our services, consistently and reliably, unless we are able to obtain access to foreign currency which is required to continuously capitalise the business.

Payments due to us from our local interconnect partners remain a challenge with over US$26 million owed to us as at 28 February 2017. The inability to obtain the payments also affects our investment decisions as this cash flow is necessary in order to meet the costs of providing the interconnect services on the network. We continue to consider options to address this outstanding issue.

CORPORATE SOCIAL INVESTMENTAs part of our continuing commitment to the people of Zimbabwe, we have provided assistance to over 200,000 orphaned and vulnerable children across the country. The business continues to provide support to talented children in various educational institutions.

BOARD APPOINTMENTSI am pleased to announce the appointments of Messrs. Hardy Pemhiwa and Michael Bennett to the Board as non-executive directors. They bring a wealth of experience and knowledge to our business which will be invaluable to the Board.

OUTLOOKWith the successful completion of the rights offer, and subsequent payment of the foreign debt, the Company is now in a stronger position to deal with the challenges of operating in an increasingly more difficult economic environment. Our robust business model, which is anchored on responding proactively to the changing economic and technological environment, remains an anchor on which we will continue to develop our strategies for the future. The technical infrastructure of the Company is a key strength on which we will leverage for our future growth. Our pioneering spirit means that we will continue to explore new ways to use technology to solve relevant problems that society is confronted with. We believe this is one of the hallmarks of our success.

An enabling regulatory environment will go a long way in providing the support that is required for technology businesses in Zimbabwe to remain viable whilst adapting to the changes brought about by the technological transformation that is currently taking place globally. DIVIDEND DECLARATIONThe Company declared a dividend of 0.467 US cents per share amounting to US$ 12.1 million for the year ended 28 February 2017.

Payment of the dividend will be made on or about 22 June 2017. Withholding tax will be deducted at a rate of 10%, where applicable. Payments to foreign shareholders will be subject to exchange control approval and payment guidelines for foreign remittances. Foreign shareholders should appoint or make their own arrangements with a local bank of their choice to receive their dividend on their behalf and to facilitate remittance to them.

The dividend is payable to members registered in the share register of Econet Wireless Zimbabwe Limited at the close of business on 16 June 2017. Shares will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 13 June 2017 and ex-dividend from 14 June 2017.

SHARE CANCELLATIONThe Company cancelled 216,344,376 shares subsequent to year end. The share capital in issue, post the rights offer, and the cancellation of treasury shares is now 2,590,576,832 shares.

APPRECIATIONI would like to take this opportunity to thank all our customers, shareholders, regulators, staff and strategic partners for the support given to the Board and I during the past financial year.

DR. J. MYERSCHAIRMAN OF THE BOARD

30 MAY 2017

NOTES TO THE AUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTSFor the year ended 28 February 2017

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(All figures in US$ 000)

Audited 28 February

2017

Audited 29 February

2016

Revenue 621,705 640,989

Earnings before interest, taxation, depreciation and amortisation

223,953

238,420

Depreciation, amortisation and impairment (138,150) (136,556)Profit from operations 85,803 101,864 Finance income 673 2,827 Finance costs (26,730) (36,230)Profit before taxation 59,746 68,461 Taxation (23,558) (28,261)Profit for the year 36,188 40,200

Other comprehensive incomeOther comprehensive income net of tax 1,064 (724)Total comprehensive income for the year 37,252 39,476

Profit for the year attributable to:-Equity holders of the parent 36,978 40,363 Non-controlling interest (790) (163)Profit for the year 36,188 40,200

Total comprehensive income for the year attributable to:-Equity holders of the parent 38,042 39,639 Non-controlling interest (790) (163)Total comprehensive income for the year 37,252 39,476

Earnings per shareBasic and diluted earnings per share (cents) 2.7 2.6 Number of shares in issue 1,640,021,430 1,640,021,430 Weighted average number of shares in issue 1,422,437,009 1,551,431,509

(All figures in US$ 000)

Audited 28 February

2017

Audited 29 February

2016

ASSETSProperty, plant and equipment, intangible assets and goodwill

728,803

834,870

Other non-current assets 52,602 44,751

Deferred taxation 8,640 10,897

Financial instruments - long term 71,727 65,625

- short term 342,230 214,468

Other current assets 20,721 26,293

Total assets 1,224,723 1,196,904

EQUITY AND LIABILITIESEQUITYShare capital and share premium 40,764 40,764

Retained earnings 638,066 614,225

Other reserves 14,922 2,546

Attributable to equity holders of the parent 693,752 657,535

Non-controlling interest 3,572 4,362

Total equity 697,324 661,897

LIABILITIESDeferred taxation 96,794 112,221

Other non-current liabilities 4,713 3,487

Financial Instruments:Long-term interest-bearing debt 55,137 112,343

Short-term interest-bearing debt 72,627 110,735

Other financial instruments - short term 100,508 134,167

Other current liabilities 197,620 62,054

Total liabilities 527,399 535,007

Total equity and liabilities 1,224,723 1,196,904

ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 28 February 2017

(All figures in US$ 000)

Audited 28 February

2017

Audited 29 February

2016

Cash generated from operations 211,744 224,476 Income tax paid (38,081) (25,566)Net cash generated from operations 173,663 198,910

Investing activitiesAcquisition of property, plant and equipment and intangible assets

(32,929)

(82,848)

Net investment in consolidated entities 5,472 -

Net (acquisition)/disposal of financial instruments (24,185) 1,429

Net cash used in investing activities (51,642) (81,419)

Cash flows from financing activitiesRepayment of borrowings (126,899) (86,737)Share buy-back - (40,066)Financing costs paid (22,549) (36,437)Dividend paid (10,977) (4,834)Increase/(decrease) in deposits due to banks and customers

91,626

9,791

Proceeds from borrowings 27,404 45,268

Proceeds from issue of shares 5,522 -

Net cash flows used in financing activities (35,873) (113,015)

Net increase in cash and cash equivalents 86,148 4,476

Cash and cash equivalents at the beginning of the year

99,715

95,239

Cash and cash equivalents at the end of the year 185,863 99,715

Comprising:Short-term investments - 520 Bank balances and cash 185,863 99,195 Cash and cash equivalents at the end of the year 185,863 99,715

ABRIDGED CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 28 February 2017

AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the year ended 28 February 2017

(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 year - 40,363 - 40,363 (163) 40,200 Other comprehensive income for the year - -

(724)

(724) - (724)

Purchase of treasury shares - (40,066) - (40,066) - (40,066)

Utilisation of treasury shares - 2,202 - 2,202 - 2,202

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

Other - 2,595 (2,624) (29) - (29)

Balance at 29 February 2016

40,764

614,225

2,546

657,535

4,362

661,897

Profit for the year - 36,978 - 36,978 (790) 36,188

Other comprehensive income for the year - -

1,064 1,064 -

1,064

Dividend - (12,820) - (12,820) - (12,820)

Other* - (317) 11,312 10,995 - 10,995

Balance at 28 February 2017

40,764

638,066

14,922

693,752

3,572

697,324

*Other includes share allotment reserve, regulatory reserves and other non-distributable reserves.

28 February 2017 29 February 2016

(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)

495,112

126,593 -

621,705

530,398

110,591 -

640,989

Depreciation, amortisa-tion and impairment

(124,269)

(13,881) -

(138,150)

(130,479)

(6,077) -

(136,556)

Segment profit 21,521 9,416 5,251 36,188 16,653 22,347 1,200 40,200

Segment assets 1,112,108 620,869 (508,253) 1,224,724 1,207,705 519,412 (530,213) 1,196,904

Segment liabilities 387,096 541,657 (401,353) 527,400 480,675 465,297 (410,965) 535,007

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, Beverages, Investments and Administration.

SUMMARISED AUDITED SEGMENT INFORMATION