Long-term foreign investor supports Econet delisting from ZSE

STAFF WRITER
One of Econet Wireless Zimbabwe’s long-term investors has called for sweeping reforms on local capital markets to restore investor confidence and attract international capital.
This comes as foreign investors have steadily reduced their exposure to Zimbabwe’s capital markets over the past two decades, citing currency volatility, capital controls and market regulatory uncertainty, trends that have eroded liquidity on the Zimbabwe Stock Exchange (ZSE) and constrained corporate capital-raising.
Simon Tex Edwards, a New Zealand-based professional investor who has held Econet shares since its initial public offering (IPO) in 1998, said Zimbabwe must implement clearer investor guarantees, predictable regulatory frameworks and stronger engagement between regulators and investors.
“The Zimbabwe Securities Commission should have engaged foreign investors to find out why they decided to leave so abruptly,” Edwards said, noting that many international investors had remained invested through previous economic crises.
Foreign portfolio participation on the ZSE peaked in the late 1990s, when Zimbabwe was one of the world’s top-performing emerging markets following economic liberalisation under the Economic Structural Adjustment Programme.
However, foreign participation declined sharply in the early 2000s, which raised sovereign risk concerns among global investors. This was followed by hyperinflation and capital controls between 2007 and 2009, which severely disrupted capital markets and triggered large-scale capital flight.
Edwards said restoring investor confidence would require codified investor protection frameworks, consistent foreign exchange policies and proactive engagement between regulators and market participants.
He added that capital markets must provide certainty for pension funds, asset managers and entrepreneurs considering listing on the ZSE.
Market analysts say the absence of consistent policy frameworks and limited regulatory engagement has discouraged both domestic and foreign investors, contributing to low market liquidity and limited new listings.
Edwards’ comments come amid Econet’s recent decision to delist from the ZSE, a move that has reignited debate over the state of Zimbabwe’s capital markets.
He defended the delisting as a strategic corporate restructuring and value-protection measure rather than a withdrawal from Zimbabwe.
Econet recently offered shareholders US$0.50 per share for those choosing to exit, while committing to remain a public company, continue paying dividends and facilitate trading through over-the-counter (OTC) platforms.
Edwards described the offer price as “very generous” compared to recent trading levels and said shareholders were not being forced to sell.
He said the delisting could help unlock embedded value in the company’s infrastructure assets, particularly through the planned spin-off of Econet InfraCo, which houses passive network infrastructure such as towers, power and fibre.
Edwards said he began investing in Zimbabwe in the early 1990s and was among a group of international frontier market investors who backed Econet when it listed on the ZSE in September 1998.
Econet later grew from a company valued at about US$25 million at listing to approximately US$2 billion by 2018, despite currency volatility, economic contraction and repeated macroeconomic shocks.
The ZSE, one of Africa’s oldest exchanges, has struggled with low liquidity, limited new listings and declining foreign participation. Several large corporates have delisted or opted for private funding, while pension funds and retail investors dominate local trading activity.
Analysts say weak capital markets constrain domestic capital formation, limit corporate financing options and increase reliance on banking sector funding, with broader implications for economic growth and fiscal stability.
Edwards said he does not intend to sell his Econet shares, citing confidence in the company’s long-term growth prospects, including opportunities in data centres and next-generation mobile technologies.
He added that Econet could return to the ZSE in the future if market conditions and regulatory frameworks improve.
Market participants say restoring investor confidence will require consistent foreign exchange policies, strengthened investor protection frameworks and proactive regulatory engagement, which could determine whether Zimbabwe can once again attract long-term portfolio and direct investment.