Econet delisting set to slow ZSE activity
CLOUDINE MATOLA
The Zimbabwe Stock Exchange Holdings (ZSEH) expects trading activity on the Zimbabwe Stock Exchange (ZSE) to slow following the exit of telecoms giant Econet Wireless Zimbabwe, a development likely to weigh heavily on market turnover and investor sentiment, Business Times can report.
Econet voluntarily delisted from the ZSE in March 2026 and migrated to the Victoria Falls Stock Exchange (VFEX) in a move aimed at unlocking shareholder value and attracting foreign currency-denominated investment.
ZSEH company secretary Lyndon Nkomo said the group expects the VFEX to cushion the impact of reduced activity on the local bourse.
“Looking ahead, the group anticipates a temporary dampening of activity on the ZSE, largely driven by the anticipated exit of Econet Wireless Zimbabwe, a heavyweight counter whose departure is expected to weigh on turnover and sentiment,” Nkomo said.
“Nonetheless, the VFEX is projected to sustain its robust momentum, supported by continued strong liquidity, renewed investor confidence, and new listings expected in the coming quarter. This resilience on the VFEX is poised to provide a natural hedge, effectively balancing the Group’s overall financial performance.”
Nkomo said heightened activity on the VFEX, combined with supportive policy interventions and ongoing reforms, could eventually help revive the ZSE and stimulate broader market growth.
“To drive sustainable growth across its subsidiaries, the Group will continue prioritising innovation, digital transformation, and product diversification,” he said.
“Heightened activity on the VFEX, alongside supportive policy measures from authorities, is expected to sustain this positive trajectory, positioning ZSEH for long-term value creation. Taken together, these developments, combined with continued product innovation, ongoing digital transformation, and progress toward reviving the dormant debt market, are set to restore vitality to the ZSE and unlock new avenues for inclusive growth.”
During the first quarter of 2026, trading activity across both exchanges strengthened on the back of relative exchange rate stability. However, toward the end of the quarter, the market recorded a notable shift following Econet’s delisting from the ZSE.
Despite the looming impact of the telecoms giant’s exit, the ZSE posted strong growth during the period under review, with secondary market activity surging sharply. Aggregate turnover jumped 416.83% to US$24.281m.
The market’s liquidity was largely driven by Econet Wireless Zimbabwe, Delta Corporation, Hippo Valley Estates, Tigere Property Fund REIT, and TN Cybertech Investments Holdings, which together accounted for 93.8% of total value traded.
Meanwhile, the VFEX achieved a historic milestone after total market capitalisation reached a record US$4bn, underpinned by strong investor demand and growing confidence in the exchange.
According to Nkomo, total value traded on the VFEX rose 69.35% to US$36.38m, compared to US$21.48m recorded in the final quarter of 2025.
“This momentum was further reflected in the VFEX All Share Index, which registered a year-to-date appreciation of 41.07%, signalling profound investor confidence in the listed counters,” he said.
