• 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.

Econet is increasingly positioning itself as a lightweight technology company, focused on digital services with minimal physical assets except for data centers. By unbundling its infrastructure, the group aims to unlock significant trapped value in its base stations and related assets, estimated at over $200 million.The proceeds and balance sheet relief will be channeled into working capital, debt reduction, and growth capex for the core telecom operations. Base stations represent one of the largest cost centers, typically financed through long-term borrowing; separating them lightens the tech-focused entity's balance sheet and operational burden.

For Econet InfraCo, value will derive from a streamlined, focused operation generating stable revenues from tower leases. A substantial portion of this upside is expected from infrastructure sharing, allowing other mobile network operators to co-locate where necessary, mirroring successful models regionally and globally that have driven premium multiples for tower companies.

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 has long been a cornerstone of the ZSE, representing approximately 21% of the exchange's total market capitalization and ranking as the second most valuable company behind Delta Corporation. In 2025, it accounted for 42% of total trading value on the exchange, frequently driving one-third to over 40% of daily activity.

Its departure is expected to cause ZSE liquidity to fall by almost 50% in the short term, significantly reducing overall trading volumes, widening bid-ask spreads, increasing concentration risk around remaining heavyweights like Delta, and potentially diminishing the market's attractiveness to investors. 

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.

In the broader economic context, the Zimbabwe Gold (ZiG) currency, introduced to stabilize the economy remains limited in its expansion within overall market liquidity and broad money supply. Despite government intentions to achieve near-100% ZiG dominance by 2030 as part of de-dollarization efforts, adoption is constrained by persistently tight interest rates and a narrow range of ZiG-denominated investment instruments. This environment continues to push quality assets toward USD platforms like VFEX, exacerbating fragmentation on the ZSE.

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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