In a straightforward and candid address, Strive Masiyiwa, founder of Econet Wireless Zimbabwe, spoke following shareholders’ decision to delist the company from the Zimbabwe Stock Exchange (ZSE). With 26 years of history behind him, Masiyiwa acknowledged the shareholders’ voices, emphasising his voluntary abstention from the vote and that of his related interests.
For the leading telecom operator, with over 15 million subscribers, this vote marked the end of a long tenure on the ZSE. However, for Masiyiwa, the moment stirred memories of past struggles. He criticised what he referred to as a flawed valuation model, noting that shares were trading at a mere US$0.08 when the delisting suggestion was made, equating to a market capitalisation of around US$239 million, in stark contrast to revenue levels that once soared past US$900 million.
Masiyiwa expressed disbelief that intervention was not deemed necessary amidst such circumstances. Indeed, Econet’s revenue plummeted from US$819 million in 2019 to US$217 million in 2020 due to the monetary chaos impacting various sectors in Zimbabwe. Additionally, foreign investors, who once held a 30% stake in the company, now represent less than 2%.
Despite recovering US$779 million in revenue by 2025, Masiyiwa argued that the market does not accurately reflect the company’s intrinsic value. “We must have the right to leave,” he asserted.
A poignant moment arose when Masiyiwa reminisced about Mrs Gatsi, a devoted shareholder who made a substantial investment in the company’s early days. “What do I do with the family of Mrs Gatsi?” he asked, visibly emotional. Instead of offering minorities buyouts at depressed valuations, Econet committed to a US$ 0.50-per-share guarantee.
Masiyiwa recounted the company’s challenging beginnings in 1993 when the State-owned Posts and Telecommunications Corporation denied him a license. This initiated a fierce five-year legal battle that ultimately transformed Zimbabwe’s telecommunications landscape. “We fought to list. We even went to court to secure it. But we must also have the right to leave,” he stated.
With the burdens of public market constraints lifted, Econet is now poised for significant developments, targeting US$3 billion in investments in artificial intelligence, data centre infrastructure, 5G upgrades, and a technology city project near Harare’s airport.
While Masiyiwa admitted he was not entirely pleased with the decision to delist, he reinforced that leadership often requires difficult choices. For Econet, this marks the end of one era, while for Masiyiwa, it represents the start of a new journey, one that promises to be characterised by advancements in artificial intelligence, resilience, and the pursuit of unfulfilled ambitions.
