By Jabulani Simplisio Chibaya
This week many investors and brokers thought they were simply checking Econet’s share price. Instead, they woke up to one of the most consequential corporate announcements in Zimbabwe’s capital markets history.
At 644.96 ZWG cents, Econet Wireless Zimbabwe did not just issue another cautionary statement: it effectively signalled a strategic reset, one that could reshape the ZSE, the telecoms sector, and how value is unlocked in Zimbabwe.
This article on the DSE News Network breaks down what this really means, in plain language, for the simple retail investor, while also digging deeper into the strategic, valuation, and sector-wide implications.
What Just Happened? (In Simple Terms)
Econet plans to:
Voluntarily delist from the Zimbabwe Stock Exchange (ZSE)
Spin off its towers, real estate, and power assets into a new company called Econet Infrastructure Company (InfraCo)
List InfraCo on the Victoria Falls Stock Exchange (VFEX), which operates in USD
Offer exiting shareholders a mix of cash + InfraCo shares
Remain unlisted, but operationally active, as a telecoms operator
This is not a collapse. This is financial engineering aimed at value creation. Zimbabwe economy is very volatile and uncertain most of the times, regulatory changes usually means companies have to reinvent themselves.
Why Econet Is Doing This (The Real Reason)
For years, Econet has traded at a deep discount relative to African peers.
African telcos trade at 6–8x EV/EBITDA
Econet trades well below this, not because its network is weak, but because:
Across Africa:
MTN, Airtel, Vodacom separated towers
Tower companies trade at higher, more stable multiples
Investors can value “boring but predictable” infrastructure separately from “risky but high-growth” telecoms
Econet is late, but not wrong. Time will still tell though.
Econet InfraCo: Where the Hidden Value Lives
What InfraCo owns:
Towers
Real estate
Power assets
Passive telecom infrastructure
Why this matters:
Towers generate recurring, dollar-linked cash flows
Multiple tenants can lease the same tower (Huge Possibility here)
Margins are high once assets are built
Capex is front-loaded, returns are long-term
This is infrastructure economics, not telecom economics. The financing going forward will shape the returns
On the VFEX:
Infrastructure & property companies trade at higher USD-based multiples, where cash flows are easier to model
Foreign investors actually understand this asset class
This is where Econet believes true value will finally be seen.
Where InfraCo’s Growth Will Come From
Tenancy Expansion
Power-as-a-Service (With competitors also facing a similar issue this might create new business)
USD Revenues
Asset Re-rating
This is slow, steady, compound-style growth, might not be a hype.
Does Econet Have the Right Human Capital?
This is a critical question, and a fair one.
Positives:
Econet has decades of experience building and maintaining infrastructure
Board and management include seasoned executives with regional exposure
Separation allows focused management for InfraCo
Risks:
Running a tower company is different from running a telco. Different skills and strategies will be needed.
Capital allocation discipline must improve
Governance standards on VFEX will be scrutinised
Overall: Yes, Econet likely has the operational DNA, but success will depend on execution, transparency, and incentives.
What Retail Investors Need to Watch Out For (The Drawbacks)
Delisting Risk
Exit Offer Risk
Regulatory & Currency Risk
Time Horizon Mismatch
What Investors Stand to Gain
Exposure to USD-based infrastructure asset
Potential re-rating of undervalued towers
Separation of “volatile telecom earnings” from “stable infrastructure cash flows”
Optionality: stay invested, exit partially, or reposition your portfolio
This is not guaranteed upside, but it is a clearer investment story. The Entry of Starlink and Amazon LEO is also shaping the landscape, so the value of the Infra Co. faces real future technology related disruption risk, Amazon LEO comes carrying Amazon cloud linkages.
What This Means for the ZSE
Let’s be honest:
Losing Econet is a psychological blow
Liquidity and market depth take a hit
Raises hard questions about:
But it also sends a message:
If the market cannot price value, capital will go where it can.
That should worry regulators more than investors. Treasury and Central Bank have a lot of improvements to make on capital markets regulations and heed the IMF and World recommendations on improving ease of doing business to prolong sustainability.
Impact on Zimbabwe’s Telecoms Sector
This move sets a precedent.
Other operators may:
Explore infrastructure sharing
Spin off passive assets
Seek USD-aligned funding structures
Long term:
Lower network duplication
More efficient capital deployment
Better service quality (if savings are reinvested)
Final Thought: Is This Good or Bad?
This is neither a miracle nor a disaster.
It is:
A strategic reset
An admission that the old structure no longer worked, the business model reinvention was long overdue.
A bet that infrastructure value belongs in infrastructure markets
For the retail investor, the key question is simple:
Do I want liquidity today, or infrastructure cash flows tomorrow?
The surprise Zimbabwe woke up to this week is not just Econet leaving the ZSE, it’s the reality that value does not disappear… it relocates.
The smart investor’s job is to decide whether to follow it.
Jabulani Simplisio Chibaya holds an MBA I GRC | FinTech | Data Governance | Open Source Software| TMT | Business Intelligence | Analytics, DataOps, PropTech | Distributed Sys| Blockchain I AWS I AI/ML I AML/CFT
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