Online Reporter
Wafa Kuchera
A LOT has been said about the proposed voluntary delisting of Econet Wireless Limited from the Zimbabwe Stock Exchange (ZSE), the concurrent listing of its subsidiary, Econet InfraCo (InfraCo), on the Victoria Falls Stock Exchange (VFEX) and the post-delisting, over-the-counter trading of Econet Wireless Limited shares on a special VFEX board.
The mechanics, rationale, pros and cons and even the conspiracies surrounding the transactions have been the subject of much debate across social media, there is little I can add to that discourse that would be constructive.
Econet shareholders will hold their Extraordinary General Meeting (EGM) on 26 February 2026. They will consider and if deemed fit, pass resolutions required to give effect to this series of sequenced transactions.
After all is said and done, it is the approximately 14 300 shareholders of Econet Wireless who will ultimately cast their votes and decide the company’s future on the ZSE.
Econet Global Limited, Econet Life (Private) Limited and Econet Insurance (Private) Limited shall be excluded from voting on the main resolutions.
However, looking at the top shareholders’ list, it seems likely that voting will swing in favour of passing all the tabled resolutions.
However, nothing is cast in stone until the final tally.
Post-EGM, shareholders will be required to choose between two options: remaining a shareholder in the delisted Econet Wireless Limited (allowing for over-the-counter trading) or taking up the exit offer.
The latter comprises a US$0,17 cash offer and a scrip offer for InfraCo shares valued at US$0,33 each, bringing the total exit offer to US$0,50 per share.
In my view, this will be the “true” vote, as actual shares and value will be on the line.
It will serve as the ultimate test of the relative valuations given for both companies.
It will be interesting to see which option wins in the end, my money is on shareholders holding out for the guaranteed US$0,50 value within Econet Wireless Limited.
The highlights: The unexpected juggernaut
The broader Econet story remains one of the epic corporate sagas in Zimbabwe. It is worth revisiting how we arrived here and why Econet remains such a hot-button issue for so many.
Econet was awarded an operating licence in 1997, launched its mobile network in July 1998 and listed on the ZSE by September of that same year.
Securing a licence for a new technology, launching and listing within such a short window was, in my opinion, pivotal.
It created enormous brand value across every tier that ordinary marketing could never have achieved.
The network expansion throughout the early 2000s — during the height of Zimbabwe’s hyperinflationary era — was a testament to the company’s capacity to navigate hard-currency capital demands against low revenues in a rapidly depreciating local currency. The upgrade to 3G in 2010 allowed for the launch of EcoCash in 2011.
This period saw the subscriber base grow exponentially, from just 1,2 million in 2009 to over 5,5 million by the end of 2011.
Further milestones, such as the acquisition of the then-distressed TN Bank in 2012, the 4G upgrade in 2017, the 5G rollout in 2022 and the stellar performance in 2025 — which saw subscribers reach 16,8 million — are the stuff of corporate legend.
These achievements are even more remarkable when over-layed against an economy struggling with capital sourcing, strict exchange controls and significant “brain drain.”
To add context, Econet started with a staff headcount of 50 in 1997. By the end of 2025, it employed 1 023 permanent staff and maintained a vast network of direct and indirect agents.
The subscriber base has grown from virtually nil to 16,8 million — roughly equivalent to Zimbabwe’s total population. However, the shareholder base grew far more modestly, from the 1998 IPO to just over 14 300 shareholders today, the majority of whom are individual retail investors.
The massive upscaling achieved over 29 years — a period in which the country did not experience a single year of single-digit inflation — is Econet’s primary “flex.”
Having a subscriber base equal to the total population is why anything Econet does commands an outsized proportion of our collective attention.
Is Econet worth a billion dollars?
Yes, and probably much more.
Is the proposed InfraCo worth a billion dollars as a standalone subsidiary?
The team at Econet and their financial advisors believe so. As observers, we will let the chips fall where they may before reviewing the results. What happens next? It is never a zero-sum game.
The exit of Econet Wireless, the second-largest company on the ZSE, will reduce the exchange’s market capitalisation by approximately ZiG27–28 billion.
This creates a massive void in the ZiG capital market universe.
While the transaction effectively “transfers” value to the VFEX (increasing its market cap by US$1 billion), those assets will no longer be available to investors who lack access to USD.
Pension funds and retail investors operating solely in the ZiG environment will lose a significant investable asset.
To put the scale into perspective, the third and fourth-largest companies on the ZSE — FBC Holdings and CBZ Holdings, respectively — have a combined market capitalisation of just ZiG15,7 billion.
All five ZSE-listed banks collectively have a market cap of approximately ZiG18,8 billion (roughly US$630 million).
Despite Econet’s growth being driven by EcoCash (a financial services product), all banks in the country combined have only 7,53 million active accounts.
The scale difference is staggering, raising serious questions about our banking sector’s structural ability to support a high-growth economy.
The remaining ZSE counters, while mostly profitable and solid, seem to lack the ability to attract similar levels of capital.
Which of them will step up to fill the gap left by Econet?
The ZSE has demonstrated an ability to attract capital through Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs), proving there is an appetite for investable products.
What happens next? Either we grow the investable market to fill the gap Econet leaves or we accept the further shrinkage of the ZiG capital market. Creating value and economic opportunity is never a zero-sum game.
Ultimately, just 14 300 investors will decide the next move for a business with a subscriber base equal to the nation’s population. This is the inherent reality of participating at the sharp end of the economic spear.
Econet’s delisting is more than just a corporate action; it is a turning point for all capital market participants.
Grow the pie!
Wafa Kuchera is an analyst with Trigrams Investments. For feedback he can be contacted on: [email protected]
Londile Moyo