HARARE – Econet Wireless Zimbabwe, the country’s largest telecommunications and technology company, is preparing to exit the Zimbabwe Stock Exchange (ZSE) after nearly 30 years, in a landmark move that will see its infrastructure and property assets migrate to the US dollar-denominated Victoria Falls Stock Exchange (VFEX).
Under the proposed restructuring, Econet will spin off its towers, property and power installations into a new entity, Econet InfraCo, which will be listed on the VFEX. At the same time, Econet’s mobile network operator business will be delisted from the ZSE, marking one of the most significant corporate shifts in Zimbabwe’s capital markets in recent years.
The group says the decision is driven primarily by persistent undervaluation on the ZSE. When Econet first issued a cautionary statement on December 3, its market capitalisation stood at the equivalent of US$628 million. A subsequent rally has lifted its valuation to around US$1 billion, but the company argues this still falls short of fair value when benchmarked against regional peers.
“For the last several years, the company has traded at a significant discount to its peers across Africa, which trade at 6–8 times EV/EBITDA,” Econet said in a statement. “These peers have already separated and realised value from their tower infrastructure, whereas the company has continued to own its towers and other passive infrastructure.”
As part of the transaction, Econet will retain a 70% stake in Econet InfraCo, with up to 30% allocated to settle an offer for shareholders who may prefer to exit the investment. The group says infrastructure assets are better suited to the VFEX, which trades in US dollars and attracts investors with a long-term focus on property and infrastructure.
“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 said, pointing to higher price-to-earnings multiples achieved by real estate and infrastructure counters listed on the VFEX.
Econet operates the dominant mobile network in Zimbabwe, carrying 88% of voice traffic, 82% of data usage and 73% of total subscribers. By the end of the second quarter, the group had built an extensive network footprint, including 234 5G sites, 1,700 LTE sites, 1,900 3G towers and 2,860 2G locations. In the six months to August alone, Econet added 27 new 2G–4G sites and 100 new 5G sites.
Beyond telecoms infrastructure, Econet also owns significant property and power assets, including solar installations, Tesla battery systems and generators, which will be housed under the new InfraCo structure.
The move mirrors a broader trend across Africa, where major telecoms groups have separated tower assets to unlock value. MTN and Airtel Africa have sold towers in markets such as Nigeria, Ghana, Uganda and Kenya to independent operators including IHS Towers and Helios Towers. Similar strategies have been adopted by Vodacom, Orange and Telkom South Africa through sale-and-leaseback transactions.
While the restructuring may enhance value for Econet shareholders, it represents a major setback for the ZSE. Econet accounts for roughly one-third of the exchange’s total market capitalisation and is among its most actively traded counters. The stock has nearly doubled in price this year, making it the second-best performer on the bourse.
On Monday alone, Econet contributed about 3.9% of total market turnover by value and 7.1% of all trades by number, providing critical liquidity for both institutional and retail investors.
Its departure is expected to significantly reduce market depth and daily trading volumes, and may raise concerns about the ZSE’s ability to retain large, high-value corporates.
Econet is not the first company to cite valuation challenges on the ZSE. Powerspeed Electrical, which owns Electrosales, previously delisted, arguing that the market failed to reflect underlying asset values. National Tyre Services is also set to exit the exchange at month-end.
Econet’s decision underscores the structural challenges facing Zimbabwe’s local-currency-denominated equity market and intensifies the debate over how the ZSE can remain competitive in an environment increasingly tilted towards US dollar-based capital markets.
