ECONET WIRELESS ZIMBABWE LIMITED

Audited Abridged Financial Resultsfor the year ended 29 February 2016

Financial H ighl ights

AUDITED 29 FEBRUARY 2016

AUDITED 28 FEBRUARY 2015

PERCENTAGE CHANGE

10 019 870 $238.4 million

9 193 108 $285.6 million

9.0% (16.5%)

For wealth of investor information please visit us at www.econet.co.zw

SUBSCRIBERS EBITDA

$641.0 million

$746.2 million

(14.1%)

TOTAL REVENUE

$40.2 million

$70.2 million

(42.7%)

PROFIT FOR THE YEAR

$149.7 million

$172.8 million

(13.4%)

STATUTORY PAYMENTS

For the year ended 29 February 2016

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.

(All figures in US$ 000)

Audited29 February

2016

Audited28 February

2015Revenue 640,989 746,183

Earnings before interest, taxation, depreciation and amortisation

238,420

285,645

Depreciation, amortisation and impairment (136,556) (126,289)Profit from operations 101,864 159,356 Finance income 2,827 1,065Finance costs (36,230) (37,076)Profit before taxation 68,461 123,345 Taxation (28,261) (53,136)Profit for the year 40,200 70,209

Other comprehensive (loss)/incomeOther comprehensive (loss)/income net of tax (724) 209 Total comprehensive income for the year 39,476 70,418

Profit for the year attributable to:-Equity holders of the parent 40,363 70,258 Non-controlling interest (163) (49)Profit for the year 40,200 70,209

Total comprehensive income for the year attributable to:-

Equity holders of the parent 39,639 70,467 Non-controlling interest (163) (49)Total comprehensive income for the year 39,476 70,418

Earnings per shareBasic and diluted earnings per share (cents) 2.6 4.5 Number of shares in issue 1,640,021,430 1,640,021,430 Weighted average number of shares in issue 1,551,431,509 1,581,784,694

(All figures in US$ 000)

Audited29 February

2016

Audited28 February

2015

ASSETSProperty, plant and equipment, intangible assets and goodwill

834,870

883,188

Other non-current assets 44,751 33,983 Deferred taxation 10,897 19,001 Financial instruments: long term 65,625 76,983 : short term 214,468 183,982 Other current assets 26,293 59,355 Total assets 1,196,904 1,256,492

EQUITY AND LIABILITIESEQUITYShare capital and share premium 40,764 40,764 Retained earnings 614,225 614,112 Other reserves 2,546 5,894 Attributable to equity holders of the parent 657,535 660,770 Non-controlling interest 4,362 4,525 Total equity 661,897 665,295

LIABILITIESDeferred taxation 112,221 120,458 Other non current liabilities 3,487 3,690 Financial Instruments:Long-term interest-bearing debt 112,343 165,758 Short-term interest-bearing debt 110,735 98,176 Other financial instruments - short term 134,167 133,493 Other current liabilities 62,054 69,622 Total liabilities 535,007 591,197

Total equity and liabilities 1,196,904 1,256,492

(All figures in US$ 000)

Audited29 February

2016

Audited28 February

2015Cash generated from operations 244,681 226,962 Income tax paid (25,566) (51,421)Net cash generated from operations 219,115 175,541

Investing activitiesAcquisition of property, plant and equipment and intangible assets

(82,848) (125,387)

Net acquisition of financial instruments (8,985) (17,729)Net cash used in investing activities (91,833) (143,116)

Cash flows from financing activitiesRepayment of borrowings (86,737) (97,793)Share (buy-back)/disposal (40,066) 34,721 Net financing costs (36,437) (36,594)Dividend paid (4,834) (29,815)Proceeds from borrowings 45,268 120,964 Net cash flows used in financing activities (122,806) (8,517)

Net increase in cash and cash equivalents 4,476 23,908 Cash and cash equivalents at the beginning of the year

95,239 71,331

Cash and cash equivalents as at end of year 99,715 95,239

Comprising:Short-term investments 520 875 Bank balances and cash 99,195 94,364 Cash and cash equivalents as at end of year 99,715 95,239

29 February 2016 28 February 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) 530,398

110,591 - 640,989

647,534

98,649 -

746,183

Depreciation, amortisation and impairment (130,479)

(6,077) -

(136,556) (117,834)

(8,455) -

(126,289)

Segment profit 16,653 22,347 1,200 40,200 64,643 8,424 (2,858) 70,209

Segment assets 1,207,705 519,412 (530,213) 1,196,904 1,007,755 672,154 (423,417) 1,256,492

Segment liabilities 480,675 465,277 (410,945) 535,007 454,396 419,611 (282,810) 591,197

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.

ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 29 February 2016

ABRIDGED CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 29 February 2016

ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 29 February 2016

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 29 February 2016

CHAIRMAN’S STATEMENT TO SHAREHOLDERS

SUMMARISED AUDITED SEGMENT INFORMATION

(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 2014 37,448 561,883 463 599,794 3,924 603,718 Profit for the year - 70,258 - 70,258 (49) 70,209 Other comprehensiveincome for the year - - 209 209 - 209Sale of treasury shares 3,316 17,406 - 20,722 - 20,722 Dividend - (29,836) - (29,836) - (29,836)Other - (5,599) 5,222 (377) 650 273

Balance at 28 February 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 loss for the year - - (724) (724) - (724)Utilisation of treasury shares - 2,202 - 2,202 2,202Purchase of treasury shares - (40,066) - (40,066) - (40,066)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

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 Company’s subsidiaries and associate.

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 29 February 2016.

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

statements for the year ended 29 February 2016, 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 on the financial statements which form the basis of these financial results is available for inspection at the Company’s registered office.

4. Statement of compliance The Group’s 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 29 February 2016 which will be distributed at the Company’s annual general meeting and is available at the Company’s registered office.

Audited Audited

29 February 28 February 2016 2015

5. Depreciation and amortisation of property, plant and equipment and intangible assets $136.6 million $126.3million

6. Commitments for capital expenditure Authorised by the directors and contracted $18.6 million - Authorised by the directors but not contracted $1.5million $3.3 million Total $20.1million $3.3million The capital expenditure is to be financed out of the Group’s own resources and existing facilities.

7. Earnings per share Earnings Profit for the year attributable to ordinary shareholders $39.6 million $70.4 million

Number of shares Weighted number of ordinary shares for purposes of basic and diluted earnings per share calculation 1,551,431,509 1,581,784,694

Basic and diluted earnings per share (US cents) 2.6 4.5

8. Share buyback At the Annual General Meeting held on 31 July 2015, the Group’s shareholders renewed the share

buyback scheme. During the year, a total of 163,992,435 shares were bought at an average price of US cents 24.4 per share. This represents 9.9% of the issued share capital.

9. Borrowings The Company and its subsidiaries were in compliance with all requirements arising from the

multi-creditor facility as at 29 February 2016.

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

annual financial statements.

11. 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. 12. 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.

OVERVIEW The country has experienced the collapse of commodity prices and de-industrialisation, which have been compounded by the ongoing drought and liquidity challenges, putting considerable strain on an already fragile economy. The resultant effects, such as job losses, continued deflation and increasing informalisation has continued to negatively affect disposable income.

This is the first annual financial period since the 35% reduction in voice tariffs, combined with a 5% excise duty on airtime. We estimate that the adverse impact of the tariff reduction on the full year revenues was about US$ 95 million. Contrary to normal practice, where excise duties are levied on the customer, the excise duty on airtime, was levied on the Company. This position was, however, reversed on 1 January 2016, and the Company was allowed to levy the duty on its customers. The excise duty levied on the Company resulted in a revenue reduction of US$ 30 million, for the year under review.

In addition, Postal and Telecommunications Regulatory Authority reduced inter-connection rates from 5 cents per minute to 4 cents per minute and increased the Universal Services Fund (USF) levy from 0.5% to 1.5%, with effect from 1 January 2016. The negative impact of these factors amounted to US$ 4.5 million on revenue and US$ 0.8 million on costs, respectively.

The Government issued Statutory Instrument 95 of 2014 which requires all subscribers to be registered. The business embarked on an intensive subscriber registration and validation exercise, a process that saw non-compliant customers being deregistered. However, in order to assist customers who were not compliant in the required time frame, we implemented an aggressive program to support customers who had been deregistered to meet the requirements. This resulted in most of our deregistered subscribers being reconnected. The revenue lost from the deregistered subscribers amounted to US$ 2 million and the cost to reconnect these subscribers came to US$ 0.5 million.

Availability of grid power remains a major challenge for the business. To mitigate against these power outages and lessen customer inconvenience, the business continued to invest in alternative power sources through diesel generators, deep cycle batteries and solar power solutions. The business has invested over US$ 55 million towards the provision of alternative power and incurred an average of about $ 7 million per annum in ongoing operating costs to run diesel generators.

The adverse developments, described above, are beyond the control of the Company. Notwithstanding, we have adjusted our business model to protect key revenue segments and improve efficiencies. As announced in the media, we embarked on aggressive cost reduction measures, on a scale larger than what has ever been implemented in the Company’s history. Initiatives implemented included, a reduction in total gross compensation by 20%; retrenchment of over 150 employees and extensive negotiations with all suppliers to achieve a 15% reduction in costs across all line items.

PERFORMANCE REVIEWRevenue for the year ended 29 February 2016 was US$ 641.0 million compared to US$ 746.2 million for last year. This reduction in revenue was as a result of the regulatory price reductions and increased levies as well as the deterioration in the economic environment.

The downward trend in voice revenue caused by the introduction of services such as WhatsApp is a universal trend experienced by the industry globally. Econet has been pursuing various measures aimed at mitigating this revenue decline. The most advanced of these measures being the investment in and growth of broadband data services, as well as the expansion of Mobile Financial Services, such as EcoCash and EcoSure. All these new services experienced robust growth during this period.

Average Revenue Per User (ARPU) declined from US$ 8.14 per month to US$ 6.84 and Earnings Before Interest, Taxation Depreciation and Amortisation (EBITDA) closed at US$ 238.4 million compared to US$285.6 million for the prior year. Profit after tax was US$ 40.2 million compared to US$70.4 for the prior year, impacted by high depreciation charge of US$ 136.6 million, compared to US$ 126.3 million in the previous year. The debt to equity ratio continued to show marked improvement, decreasing from 36% to 31%, after repaying a total of US$ 86.7 million to lenders for the period under review.

CORPORATE SOCIAL INVESTMENTOver the past seventeen years, Econet has impacted over 200 000 orphaned and vulnerable children whilst increasing support to highly talented students to further their education at various tertiary institutions.

BOARD APPOINTMENTSI am pleased to announce the appointment of Mr Roy Chimanikire to the position of Finance Director. I have all the confidence that he will contribute to the success of the business and I wish him every success.

OUTLOOKThe ongoing foreign currency shortages and general liquidity constraints have made it difficult for customers to spend on goods and services. The stagnation of the economy and the consequent impact on consumers will continue to put a strain on all businesses operating in Zimbabwe.

In spite of these challenging operating circumstances, we continue to tailor our products and services to remain relevant to our customers, understanding that they are under financial strain and so are demanding ever greater value for money. Consequently, we continue to review our product pricing, bundle composition, marketing and selling strategies to offer solutions based on clearly understood customer segments and markets. The board and management continue to seek cost efficiencies, wherever possible, in order to deliver a lean and agile operation.

The Company’s operating model remains the foundation on which we will deliver sustainable performance in the future. Through relentlessly pursuing innovation, the Group will continue to roll out products and services that are customer-centric and technologically relevant.

DIVIDEND DECLARATION I am pleased to announce that the Directors declared a cash dividend of 0.90 US cents per share amounting to US$13.3 million, for the year ended 29 February 2016.

Payment of the dividend will be effected on or about 8 August 2016. 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. Dividend accounts will be funded on or about 8

NOTES TO THE AUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTSFor the year ended 29 February 2016

Tip-offs AnonymousDeloitte & ToucheTelephone: 0800 4105 Address: The Call CentreFreepost: P.O. Box HG 883, Highlands, Harare, ZimbabweE-mail: econetzw@tip-offs.com

August 2016. Foreign shareholders should appoint and make their own arrangements with a local bank of their choice to receive dividend on their behalf and to facilitate the foreign remittance for them.

The shares of the Company will be traded cum-dividend on the Stock Exchange up to the market day of 29th July 2016 and ex-dividend as from 1st August 2016.

APPRECIATIONI thank our customers, staff, shareholders, regulators and strategic partners, board members and management for their continued support.

DR. J. MYERSCHAIRMAN OF THE BOARD23 May 2016