Econet Wireless has announced that it is in discussions with the Zimbabwe Stock Exchange (ZSE) regarding the issuance of a circular to shareholders about its plans to voluntarily delist from the exchange. This development follows the company’s recent move to initiate the delisting process, which it cites as a necessary step after years of trading that have resulted in what it describes as a persistent valuation discount. The telecommunications giant, led by Strive Masiyiwa, is seeking to implement a broader restructuring strategy to enhance shareholder value.
The motivation for this decision stems from ongoing frustration with its market valuation. Econet has consistently traded at lower multiples than its regional telecom competitors, many of which are valued at 6 to 8 times EV/EBITDA after successfully separating their infrastructure operations. Essentially, other African telecoms have undergone restructuring that has rewarded their investors, leaving Econet feeling it has not kept pace.
Instead of divesting from its tower assets entirely, Econet plans to establish a new entity, Econet Infrastructure Company Limited, to handle its infrastructure assets and list on the Victoria Falls Stock Exchange (VFEX). The telco announced on Tuesday that discussions are ongoing regarding this move, which will involve the new company managing towers, power, and real estate assets. At the same time, Econet retains a 70% controlling interest.
This strategy is significant as separating infrastructure has become a well-recognised method for unlocking value in the African telecommunications sector. Major players like MTN, Airtel, Vodacom, and Orange have effectively created separate entities for their tower operations, attracting long-term investment and allowing them to concentrate on their core telecommunications services. Econet is now following a similar path, but on its own terms.
For shareholders, the transition will not be sudden. Econet intends to provide a voluntary exit option before completing the delisting, giving investors the choice to cash out or take partial payment in shares of the newly formed infrastructure company. A shareholder vote is anticipated for January 2026, which will ultimately determine whether one of Zimbabwe’s most notable publicly traded companies embarks on this new direction away from the ZSE.
