Zimbabwe Tech Sector Grapples with EcoCash Fraud Wave as Starlink Expands, Tax Compliance Issues Persist
Zimbabwe's digital economy faces mounting security challenges as police arrest 11 EcoCash scammers with $22,000 in assets, while Starlink ends service restrictions in major cities and tax authorities acknowledge implementation problems with new digital services levies.
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Zimbabwe's technology sector confronted multiple headwinds in early 2026, with cybersecurity breaches targeting the country's dominant mobile money platform coinciding with regulatory challenges and infrastructure developments that highlight the growing pains of digital transformation in the southern African nation.
The Zimbabwe Republic Police arrested 11 individuals in connection with an EcoCash phishing operation that drained user wallets through sophisticated social engineering attacks. According to TechZim, authorities recovered assets valued at $22,000, including iPhone 17 Pro Max devices, vehicles, and cryptocurrency holdings. The arrests followed a sustained fraud campaign that prompted both law enforcement warnings and platform security upgrades by Econet, EcoCash's parent company.
"The service 'had been hacked' warnings circulated on WhatsApp, but the reality was more complex—scammers exploited platform features rather than breaching core systems," TechZim reported in January, detailing how fraudsters used phishing techniques to trick users into revealing credentials. Econet responded by deploying security enhancements to its mobile application, though the arrests suggest criminal networks had already profited substantially from the vulnerability window.
The mobile money fraud emerged as Zimbabwe's most widely-used digital payment system faced its most serious security crisis, raising questions about consumer protection in markets where mobile money penetration exceeds traditional banking access. EcoCash dominates Zimbabwe's mobile money sector, processing the majority of digital transactions in an economy where cash shortages have accelerated digital payment adoption.
Separately, satellite internet provider Starlink removed "sold out" restrictions on service availability in Harare and Bulawayo after 15 months of capacity constraints. The availability expansion, confirmed through Starlink's coverage maps in February, opens access to SpaceX's low-earth orbit internet service in Zimbabwe's two largest urban centers, which collectively account for approximately 3 million residents.
TechZim noted the development "will trigger a virtual stampede" for the service, which offers speeds significantly exceeding terrestrial alternatives in markets where fixed-line infrastructure remains limited. The expansion addresses pent-up demand in urban areas where internet connectivity bottlenecks constrain business operations and digital service delivery. Starlink's entry into Zimbabwe's connectivity market occurred in 2024, but capacity limitations quickly exhausted initial service allocations in high-demand zones.
On the regulatory front, the Zimbabwe Revenue Authority acknowledged "major problems on the ground" with implementation of the Digital Services Withholding Tax introduced in early 2026. According to TechZim, ZIMRA officials conceded operational challenges in collecting the levy, which targets digital service providers and platforms conducting business in Zimbabwe. The tax forms part of government efforts to capture revenue from digital economy activities, but compliance mechanisms appear insufficiently developed for effective enforcement.
"ZIMRA explained how Zimbabwe's new Digital Services Withholding Tax is supposed to work, on record," TechZim reported in January. "But if you listen carefully to what was said, there are significant implementation gaps." The admission underscores broader challenges African governments face in taxing digital services, where cross-border transactions and jurisdictional ambiguities complicate revenue collection.
State-owned telecommunications operator NetOne launched a free tourist SIM card initiative in February, targeting international visitors who previously faced documentation requirements matching those imposed on residents. The service aims to capture tourism-related mobile revenue as Zimbabwe seeks to rebuild its visitor economy following years of contraction. NetOne competes with privately-owned Econet and Telecel in Zimbabwe's mobile market, where subscriber growth has plateaued amid economic pressures.
The convergence of security breaches, infrastructure expansion, and regulatory friction illustrates the complex dynamics shaping Zimbabwe's digital economy. Mobile money fraud threatens consumer confidence in platforms that have become essential financial infrastructure, while connectivity improvements and new services signal ongoing sector development despite macroeconomic headwinds.
The EcoCash security incidents particularly highlight vulnerabilities in mobile financial services that process billions of dollars annually in markets with limited alternative payment infrastructure. As digital service adoption accelerates across African markets, the balance between innovation, security, and regulation will determine whether technology sectors can sustain growth while protecting users and generating government revenue.