Econet abandons ZSE after 27 years, takes infrastructure portfolio to dollar-based market
SAMANTHA MADE
After 27 years on the Zimbabwe Stock Exchange (ZSE), Econet Wireless, the country’s largest technology company, is set to delist and move its property and infrastructure assets to the US dollar-based Victoria Falls Stock Exchange (VFEX), move aimed at unlocking shareholder value.
Econet, which first listed on the ZSE in 1998, will spin off its towers, property, and power installations into a new entity, Econet Infrastructure Company Limited (Econet InfraCo), to be listed on the VFEX. Its core mobile network operator business, Econet Wireless Zimbabwe Limited (EWZ), will be voluntarily delisted from the ZSE.
“The company has resolved to pursue a voluntary delisting from the official list of the ZSE,” said Econet’s company secretary, Tatenda Ngowe.
“For the last several years, the Company has traded at a significant discount to its peers across Africa, which trade at 6–8x EV/EBITDA. These peers have already separated and realised value from their tower infrastructure, whereas the company still owns its tower and other passive infrastructure, which it has now housed under a separate infrastructure company to be listed on the VFEX.”
Under the plan, Econet will retain a 70% stake in Econet InfraCo, offering up to 30% of shares to existing shareholders through a voluntary exit offer payable in a combination of cash and InfraCo shares.
“The valuation of Econet InfraCo’s shares will be determined by an independent valuation expert to ensure fairness, transparency, and regulatory compliance,” Ngowe added.
Econet argued that the VFEX is a more appropriate platform for infrastructure assets, given the higher Price-to-Earnings multiples at which listed real estate and infrastructure companies trade. “Unlike the mobile network operator business in Zimbabwe, infrastructure assets represent a different class of investment, one that is better understood and valued within USD-based property and infrastructure markets,” the company noted.
The move aligns with global and regional trends. Across Africa, telecom giants including MTN and Airtel Africa have sold towers in Nigeria, Ghana, Uganda, and Kenya to independent operators such as IHS Towers and Helios Towers. Vodacom, Orange, and Telkom South Africa have also carved out tower units via sale-and-leaseback structures, realising substantial value.
Econet’s market dominance in Zimbabwe is undisputed.
The company controls 88% of voice traffic, 82% of data usage, and 73% of subscribers, operating 234 5G sites, 1,700 LTE sites, 1,900 3G towers, and 2,860 2G locations. It has invested heavily in power assets, including solar installations, Tesla batteries, and generators, with 127 new sites added in the first half of the year alone.
Econet’s departure is a seismic blow for the ZSE, which has been striving to attract and retain high-value listings. The company represents roughly a third of the exchange’s market value and is one of its most frequently traded stocks, drawing large institutional investors alongside retail participants. This week, Econet accounted for 3.9% of total market turnover and 7.1% of all trades by number.
“The loss of Econet will immediately shrink the ZSE’s size and liquidity, with daily trading volumes expected to fall significantly,” analysts warned. The move highlights an ongoing trend of high-value delistings: Powerspeed (owner of Electrosales), Khayah Cement, Truworths, and National Tyre Services have all exited or are set to leave the exchange, citing undervaluation of assets.
Econet’s decision underscores the challenge facing the ZSE: retaining marquee companies on a local currency-denominated platform when US dollar-based alternatives, such as the VFEX, offer access to investors who value infrastructure and real estate assets more appropriately.,
Shareholders wishing to trade EWZ shares after delisting will do so privately, with pre-emption rights reinstated.
“Shareholders wishing to deal in the Company’s shares post-delisting may do so privately, subject to the Memorandum and Articles of the Company and the provisions of the Companies and Other Business Entities Act (COBE), and the rights of pre-emption of existing shareholders,” Ngowe explained.
