Zimbabwean telecom powerhouse Econet Wireless Zimbabwe Ltd., controlled by billionaire Strive Masiyiwa, has announced plans to delist from the Zimbabwe Stock Exchange (ZSE) after years of trading at steep discounts relative to regional peers.
The move is part of a broader corporate restructuring designed to unlock shareholder value and align the company with global telecom industry practices. According to Econet, the company’s valuation has lagged behind peers in Africa, which typically trade at 6–8 times EV/EBITDA, partly due to the lack of separation between operating businesses and infrastructure assets.
Infrastructure Spin-Off
As part of the restructuring, Econet will retain ownership of its towers, real estate, and power assets, which will be transferred into a new entity named Econet Infrastructure Company Limited (Econet InfraCo). Econet will maintain a 70% stake, while up to 30% of shares will be used to settle shareholder exit offers during the delisting process.
📢 GET A DETAILED ARTICLES + JOBS
Join SamBoad's WhatsApp Channel and never miss a post or opportunity.
The plan includes listing Econet InfraCo on the Victoria Falls Stock Exchange (VFEX), a move designed to increase transparency, unlock capital, and align with trends seen across Africa, where telecom operators such as MTN, Vodacom, Airtel, and Orange have separated infrastructure assets to enhance investor value.
A shareholder meeting is scheduled for January 2026 to approve the proposal, which will also offer existing investors a voluntary exit option, either in cash or part-payment in shares of the newly created infrastructure subsidiary.
Strategic Rationale
The restructuring addresses long-standing valuation gaps by isolating passive infrastructure from operational telecom services. Analysts note that dedicated tower companies generally attract higher multiples due to predictable cash flows, lower operational risk, and potential for independent investment.
Econet’s delisting and spin-off strategy is expected to provide the company with greater flexibility to invest in network expansion, digital services, and infrastructure development, while offering shareholders clearer visibility into the underlying value of the infrastructure business.
Implications for African Telecoms
Industry observers view the move as a natural evolution in the African telecom sector, reflecting global trends where separating passive assets unlocks capital for network growth and investor returns. The delisting could also prompt other regional players to reassess their corporate structures to enhance market valuation.
Source: The High Street Business
Disclaimer: Some content on The High Street Business may be aggregated, summarized, or edited from third-party sources for informational purposes. Images and media are used under fair use or royalty-free licenses. The High Street Business is a subsidiary of SamBoad Publishing under SamBoad Business Group Ltd, registered in Ghana since 2014.
For concerns or inquiries, please visit our Privacy Policy or Contact Page.
