HARARE – Econet Wireless Zimbabwe has placed a valuation of approximately US$1 billion on its newly created infrastructure subsidiary, Econet InfraCo, ahead of a planned listing on the Victoria Falls Stock Exchange (VFEX) in what could become one of the most significant transactions in the country’s capital markets history.
Details released in a shareholder circular show that InfraCo will house the group’s telecommunications towers, energy assets and property portfolio, marking a strategic shift that aligns Econet with a global industry trend in which mobile operators separate capital-intensive infrastructure from higher-growth service operations.
A structural overhaul
The proposed transaction forms part of a broader restructuring that would see Econet Wireless delist from the Zimbabwe Stock Exchange (ZSE) main board and transition to a VFEX-managed Over-the-Counter (OTC) trading platform. That platform would include mechanisms aimed at preserving shareholder value, including a minimum price framework designed to limit downside volatility.
Econet InfraCo, by contrast, will be listed on the VFEX by introduction, meaning no new capital will be raised at listing. Instead, shares will be distributed to existing shareholders as part of an exit and reorganisation offer that effectively separates the infrastructure and operating businesses.
According to the circular, the group’s valuation under the transaction framework stands at roughly US$1.52 billion, combining an implied market capitalisation of the operating telecoms business of about US$507 million with the US$1 billion valuation assigned to InfraCo by an independent financial adviser.
Shareholder exit terms
Minority investors are being offered a blended exit package valued at US$0.50 per share. This consists of US$0.17 in cash and US$0.33 in shares in Econet InfraCo. The structure means that roughly two-thirds of the value offered to shareholders is tied to the future market performance and underlying valuation of InfraCo, rather than immediate cash proceeds.
The InfraCo valuation is based on an enterprise value multiple of about 20 times EBITDA, according to transaction disclosures, reflecting the perceived stability and US dollar-linked nature of infrastructure earnings.
Infrastructure strategy
InfraCo’s business model is designed around predictable, hard-currency revenue streams. Its tower portfolio will be anchored by a long-term tenancy agreement with Econet Wireless, providing stable base income, while also allowing scope for infrastructure sharing with other operators. This mirrors models seen across African and global telecoms markets, where tower companies increasingly operate as independent wholesale infrastructure providers.
The company will also manage Econet’s expanding renewable energy and power operations, initially focused on internal supply but with ambitions to scale into broader national power projects. In addition, its real estate arm is expected to pursue commercial property development, including the recently announced Econet Industrial Park project near Harare, positioning InfraCo as a diversified infrastructure and property platform.
Management argues that separating infrastructure assets will unlock value by allowing each business — services and infrastructure — to pursue distinct capital structures, growth strategies and investor bases more suited to their risk and return profiles.
A pivotal shareholder vote
The transaction remains conditional on shareholder approval at an Extraordinary General Meeting scheduled for 26 February 2026. The listing of InfraCo on the VFEX is targeted for late March, subject to regulatory and shareholder clearance.
Notably, the controlling shareholder has been excluded from voting on certain elements of the proposal under exchange rules, placing greater influence in the hands of minority investors. For Zimbabwe’s capital markets, the deal represents more than a corporate restructuring. If completed, it would mark a rare large-scale US dollar-denominated infrastructure listing, deepen activity on the VFEX, and signal a shift toward more sophisticated capital structuring among the country’s largest corporates.
