HARARE – Zimbabwe’s largest telecommunications company, Econet Wireless Zimbabwe, could see its share price almost double over the next year as its aggressive investment in artificial intelligence (AI), digital services and network infrastructure strengthens its long-term growth outlook, according to a new equity research report.
Investment research firm IH Securities has maintained an “undervalued” recommendation on the telecoms giant, assigning a 12-month target price of US$0.96 per share, compared with its current over-the-counter (OTC) reference price of US$0.50 following the company’s voluntary delisting from the Zimbabwe Stock Exchange.
The brokerage estimates that the valuation implies an upside of approximately 91 percent, arguing that the current market price reflects the liquidity constraints and pricing inefficiencies associated with Zimbabwe’s OTC market rather than any deterioration in Econet’s underlying business performance.
IH Securities said it had refined its valuation model to place greater emphasis on the company’s intrinsic cash-generating ability, citing confidence in the sustainability of future earnings and cash flows.
The positive outlook follows another year of robust financial performance by the telecommunications operator.
For the financial year ended 28 February 2026, Econet reported revenue of US$1.1 billion, representing a 23 percent increase from the previous year, supported by continued growth across mobile connectivity, broadband data services and digital financial services.
Profitability improved even more sharply, with net profit attributable to shareholders rising 142 percent to US$229 million, largely driven by lower exchange-related losses and improved operational efficiencies. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to US$459 million, translating into an EBITDA margin of 40.6 percent, highlighting the company’s strong cash generation.
Analysts believe the company’s strategic evolution beyond conventional telecommunications is becoming an increasingly important investment theme.
Econet has accelerated investments aimed at transforming itself into an AI-enabled digital services business, positioning artificial intelligence alongside connectivity as a future driver of revenue growth. The strategy is expected to enhance customer experience, improve operational efficiency and support the development of new digital products and enterprise solutions.
The transformation has been accompanied by continued expansion of network infrastructure.
During the reporting period, Econet commissioned 200 additional base stations, including 95 fifth-generation (5G) sites, significantly increasing network capacity and extending coverage across the country. The investment helped accommodate surging demand for digital connectivity, with mobile data traffic doubling during the year while voice traffic expanded by 35 percent.
The company’s fintech ecosystem also continued to strengthen, with EcoCash Holdings Zimbabwe benefiting from rising transaction volumes, an expanding customer base and ongoing technology upgrades. The introduction of additional digital financial products and financial inclusion initiatives further reinforced the platform’s position within Zimbabwe’s rapidly evolving digital payments landscape.
Data and internet services remained Econet’s largest source of revenue, contributing 41.6 percent of total turnover, followed by airtime sales at 28.3 percent and mobile money services at 11.2 percent, underscoring the company’s ongoing transition towards higher-value digital revenue streams.
Looking ahead, IH Securities forecasts continued earnings momentum.
The brokerage expects revenue to increase by 13.5 percent to approximately US$1.28 billion during the current financial year, supported by sustained growth in mobile data consumption, increased adoption of digital financial services and the commercial rollout of AI-enabled products.
EBITDA is projected to reach US$552 million, with operating margins improving to 43 percent, while net profit is forecast to rise to US$329 million as productivity gains continue and foreign exchange-related losses remain contained.
Analysts also highlighted Econet’s commanding competitive position within Zimbabwe’s telecommunications industry as a major long-term advantage.
According to the latest market statistics from the Postal and Telecommunications Regulatory Authority of Zimbabwe, the company controls approximately 73.75 percent of the country’s active mobile subscriptions, maintaining a dominant lead over its competitors and providing a strong platform from which to expand its AI, digital connectivity and financial services businesses.
