Econet completes strategic reorganisation

LIVINGSTONE MARUFU

Econet Wireless Zimbabwe, the country’s largest mobile network operator, has completed a major internal reorganisation that will see its real estate and passive telecommunications infrastructure assets carved out into a standalone entity, Econet Infrastructure Company (Econet InfraCo), Business Times can report.

Subject to shareholder and regulatory approvals, the group intends to voluntarily delist from the Zimbabwe Stock Exchange (ZSE) and list Econet InfraCo on the Victoria Falls Stock Exchange (VFEX), positioning the infrastructure business on Zimbabwe’s US dollar-denominated bourse.

Company secretary Tatenda Ngowe confirmed that the internal restructuring process has been completed, with only shareholder and regulatory approvals outstanding.

“… the group successfully completed a reorganisation that resulted in the consolidation of its real estate and passive telecommunications infrastructure assets into a standalone dedicated real estate entity, Econet Infrastructure Company (Econet InfraCo),” Ngowe said.

“Subject to the requisite shareholder and regulatory approvals, the company plans to delist from the ZSE and list Econet InfraCo on the VFEX.”

The company has already commenced engagements with the ZSE to finalise the proposed voluntary delisting. Upon conclusion of regulatory consultations, Econet will publish a circular to shareholders detailing the full mechanics of the ZSE delisting and the simultaneous VFEX listing of Econet InfraCo.

Management believes the carve-out represents a fundamental re-rating opportunity for the group, enabling clearer visibility of asset values, more disciplined capital allocation, and a focused operational strategy for infrastructure deployment and management.

Ngowe said the restructuring underscores Econet’s strategic intent to optimise shareholder value while sharpening operational execution across its core businesses.

“Underpinned by continued investments and modernisation of network infrastructure, the group is strategically positioned to optimise customer experience and process efficiencies by exploiting the opportunities presented by increased adoption of AI-driven solutions,” she said.

These technologies span network fault detection and self-healing, fraud detection, and hyper-personalised customer experiences, placing innovation at the centre of Econet’s growth agenda in an increasingly competitive and digitally driven market.

Despite a challenging macroeconomic environment, Econet demonstrated resilience and adaptability during the quarter, continuing to invest aggressively in network infrastructure and intelligent technologies to meet evolving customer demand.

During the period, the group rolled out an additional 103 base stations and sites nationwide. Of these, 27 were lightweight, cost-effective base stations targeted at developing urban areas and underserved rural communities, regions historically plagued by poor connectivity.

“Our objective is to significantly improve coverage in areas historically challenged by poor connectivity and to meet rising demand driven by urbanisation,” Ngowe said.

“These installations form the backbone for future innovations, enabling the business to introduce new product offerings and activate a range of Internet of Things (IoT) use cases to unlock new markets.”

The group also completed a major core network expansion for both voice and data services, a move expected to materially improve service quality and network reliability.

Complementing these investments, Econet is in the final phase of commissioning a new billing and subscription platform aimed at automating critical business processes and enabling more personalised, customer-centric digital experiences—a marked departure from traditional telecoms operating models.

Artificial intelligence continues to play a central role in Econet’s digital transformation strategy. The group is steadily moving towards an autonomous network model—one capable of self-configuration, self-optimisation, self-healing and self-learning through AI and machine learning.

These capabilities are designed not only to prevent and mitigate network disruptions but also to enhance security and improve overall customer experience.

“As the adoption of digital solutions accelerates, the group remains committed to implementing AI-powered solutions to analyse customer usage trends and to design and deliver highly personalised services in real time,” Ngowe said.

Operationally, Econet recorded a robust performance during the quarter, with voice usage firming by 35% compared to the prior period—growth that underscores the urgency of continued network capacity expansion and optimisation.

Mobile money subsidiary EcoCash also posted strong gains, with customer activity increasing by 28% and transaction volumes rising by 36%. Wallet funding surged by 91% year-on-year, reflecting renewed momentum in digital payments.

The business continues to expand access to mobile financial services, resulting in an 88% increase in footprint compared to the same period last year.

The insurance segment delivered broad-based growth, with individual life policies rising by 10%, short-term insurance policyholders increasing by 81%, and medical aid membership growing by 9%.

Econet said ongoing investments in network infrastructure, targeted customer initiatives, and the expansion of mobile financial services and wallet funding remain central to driving revenue growth across all major segments.