• Econet Wireless Zimbabwe revealed plans to delist after 27 years, citing gross undervaluation, with a shareholder vote scheduled for January 2026 and a spin-off of infrastructure assets to a new entity for potential USD listing on VFEX
  • As the second-largest counter with a $734.69 million USD market cap, Econet's exit risks shrinking ZSE capitalization by 20-30%, slashing liquidity (where it drives 30-40% of volumes), and heightening concentration around Delta amid low daily turnover
  • Unlike companies that migrated directly to VFEX, Econet's two-step approach avoids currency conversion constraints for potentially higher fair value reflection

       

Harare- Zimbabwe's leading telecommunications operator, Econet Wireless Zimbabwe, is set to delist from the Zimbabwe Stock Exchange (ZSE) after 27 years of being listed, having made its debut on the exchange in September 1998.

This development, announced on December 15, 2025, follows the group's recent cautionary statements regarding the gross undervaluation of its shares relative to its operational strength and extensive asset base, with a shareholder meeting planned for January 2026 to seek approval for the proposed scheme of reconstruction.

“Further to the cautionary announcement dated 3 December 2025, shareholders are advised that the Board of Directors of Econet Wireless Zimbabwe Limited has resolved to pursue a voluntary delisting of the Company from the Official List of the Zimbabwe Stock Exchange (“ZSE”), the Group said in a circular.

The plan involves spinning off Econet's passive infrastructure assets, encompassing towers, real estate, and power facilities into a new subsidiary, Econet Infrastructure Company Limited (Econet InfraCo). This entity is earmarked for an independent listing on the Victoria Falls Stock Exchange (VFEX) through introduction after an independent valuation.

Unlike previous companies such as Innscor Africa, National Foods, Simbisa Brands, and National Tyre Services that pursued direct migrations to the VFEX, translating their ZWL-denominated valuations directly to USD using interbank rates, Econet is opting for a complete voluntary delisting from the ZSE first.

                       

This will be followed by a revaluation of its asset portfolio by an independent expert before relisting InfraCo (and potentially the core business) by way of introduction on the VFEX.

             

This deliberate two-step approach allows Econet to circumvent the limitations of direct currency conversion, address persistent undervaluation more effectively, and achieve a potentially higher and fairer reflection of its intrinsic value in a USD environment.

As of December 15, 2025, key market capitalisations in USD millions highlighted the ZSE's concentration: Delta Corporation led at 974.17 million, followed by Econet at 734.69 million, FBC Holdings at 244.34 million, CBZ Holdings at 200.35 million, and Rainbow Tourism Group (RTG) at 109.94 million. These figures reflect Econet's position as the second most valuable company by market capitalisation (behind Delta Corporation).

Econet's longstanding presence on the ZSE, commanding around one-third of shares traded with contributions sometimes surging past 40% in periods of heightened activity has made it a cornerstone of the exchange. On December 15, trading volumes reflected this dominance, with Delta at 1.6 million shares, Econet at 455,100 shares, FBC at 155,800 shares, Ariston at 49,000 shares, Meikles at 38,900 shares, and Seedco at 24,200 shares. In value traded, Delta led overwhelmingly at 30.72 million (local currency units), followed by Econet at 2.9 million, FBC at 1.48 million, CBZ at 232,000, and Meikles at 124,000.

Together with Delta, Econet has historically driven a substantial portion of the exchange's trading volume and overall market capitalisation.

The decision highlights ongoing structural issues on the ZSE, such as currency volatility and constrained liquidity, which have limited valuation multiples despite Econet's market dominance.

Regionally, African counterparts like Vodacom, MTN, and Airtel Africa have realised higher EV/EBITDA multiples of 6-8x following similar infrastructure separations. Internationally, operators including Verizon and AT&T benefit from 7-9x multiples, further amplified by dedicated tower firms such as American Tower, which trades above 15x EV/EBITDA.

Econet's potential exit contributes to a persistent pattern of delistings outweighing new listings on the ZSE, eroding market breadth and depth.

In 2025, departures have included the Old Mutual Top Ten ETF (January), Khayah Cement (May), Truworths (July), and National Tyre Services (effective December 31).

Over the five-year period from 2021 to 2025, notable exits have featured Padenga Holdings, Axia Corporation, Bridgefort Capital, as well as VFEX migrations by companies like Innscor Africa, National Foods, Simbisa Brands, and Zimplow, offset by only a handful of new listings, including Tigere REIT, Revitus Property Opportunities REIT, and the ZSE's self-listing as ZSE Holdings.

Removing such a pivotal counter as Econet would significantly impair ZSE liquidity in the short term, exacerbate concentration around remaining heavyweights like Delta, widen bid-ask spreads, and exert downward pressure on key indices amid prevailing economic challenges.

                           

This shift risks accelerating capital outflows and deepening market fragmentation as USD assets gravitate toward the VFEX, potentially undermining the ZSE's effectiveness in facilitating capital allocation and accurate price discovery. However, historical data from similar migrations suggests the ZSE may weather the storm in the long run by adapting to a leaner structure focused on local-currency counters.

The group now needs to fast-track its desire for an SME exchange, and even explore innovations like crypto trading, to broaden participation, enhance liquidity, and attract new listings that could revitalize the platform over time.

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