HARARE – In a move that has redefined the landscape of Zimbabwe’s telecommunications sector, Econet Wireless, the nation’s largest mobile network provider, has officially delisted from the Zimbabwe Stock Exchange (ZSE). This pivotal decision, overwhelmingly endorsed by minority shareholders, marks a significant shift in corporate strategy and raises pertinent questions about the future of capital markets in the country. The company is now poised to embark on a new chapter, focusing on infrastructure development, 5G expansion, and a foray into artificial intelligence, as articulated by its visionary founder, Strive Masiyiwa.
The delisting process culminated on March 2, 2026, following an Extraordinary General Meeting (EGM) where an impressive 95 percent of eligible minority shareholders voted in favour of Special Resolution No. 1, the delisting resolution. Notably, controlling shareholders were precluded from voting on this resolution, a measure in line with ZSE regulations to ensure impartiality and protect minority interests. This overwhelming support underscores a robust confidence in the board’s strategic direction amidst evolving local capital market dynamics.
Central to this restructuring is an exit offer extended to shareholders, valued at US$0.50 per share, which garnered 96.6 percent support. This offer is structured as a single, indivisible package, comprising a US$0.17 cash component—representing the company’s 90-day Volume Weighted Average Price (VWAP)—and a US$0.33 component. The latter will be settled through the issuance of one new share in Econet InfraCo for each Econet share tendered. Shareholders now face a clear choice: accept the offer for immediate US dollar liquidity and continued exposure to infrastructure assets via publicly tradable Econet InfraCo shares on the Victoria Falls Stock Exchange (VFEX), or remain shareholders in the now unlisted public entity, Econet Wireless Zimbabwe Limited.
Econet InfraCo, a newly formed entity, will house the group’s substantial real estate portfolio, passive telecommunications infrastructure, and power assets. This strategic unbundling and subsequent listing by introduction on the US dollar-denominated VFEX is anticipated to unlock significant value. Industry analysts suggest that the VFEX’s hard currency trading environment will appeal to foreign investors, providing a more attractive platform for capital injection into critical infrastructure. While Econet Wireless Zimbabwe will continue to trade on an Over-The-Counter (OTC) platform operated by the VFEX, the liquidity dynamics may differ from its previous ZSE listing.
The decision to delist, initiated in February 2026, was primarily driven by several factors, including regulatory changes, exchange fee structures, and shifting capital requirements. For Zimbabwe’s capital markets, the departure of a blue-chip security like Econet, which reduced VFEX’s market capitalisation by approximately 40 percent, represents a considerable setback. It removes one of the exchange’s most actively traded securities and could potentially undermine exchange credibility and investor participation incentives. However, from Econet’s corporate perspective, delisting offers greater operational flexibility, allowing for capital redeployment towards ambitious fibre infrastructure expansion and 5G network development—investments that were previously constrained by public market disclosure and governance requirements.
Regulatory dynamics have played a crucial role in this strategic pivot. The telecommunications sector in Zimbabwe has faced mounting pressure regarding interconnection fees, infrastructure investment mandates, and pricing controls. This regulatory environment has led larger telecommunications companies to view local exchanges as restrictive rather than facilitative, prompting a preference for private equity structures or international listings. If governmental pressure on telecommunications pricing continues to intensify, delisting becomes an increasingly strategic manoeuvre, effectively removing public shareholders who might otherwise challenge management decisions through shareholder activism.
Adding to the complexities, Econet has recently faced public scrutiny and consumer backlash. In January 2026, the Consumer Council of Zimbabwe (CCZ) formally accused Econet Wireless Zimbabwe of “unfair and exploitative practices”. This followed an earlier controversy in September 2025, when the company faced backlash over its “Smartbiz router-only” policy, which customers slammed as “exploitative”. These incidents highlight the challenging operating environment for telecommunication providers in Zimbabwe, further complicated by high data costs, foreign currency exposure, and persistent power supply constraints.
In a rare address to shareholders, his first since 1999, Econet Global Group chairman Strive Masiyiwa cast a compelling vision for the company’s future. He revealed a bold challenge issued to management: to significantly scale the company’s revenues. “I called Douglas Mboweni and I said, Douglas, what is your revenue? He said, Mr Masiyiwa, we are closing in on one billion. We are back. I said, yes, but I want a plan for three billion in five years,” Masiyiwa stated, outlining an ambitious growth trajectory.
Masiyiwa underscored the capital-intensive nature of the telecommunications industry, emphasising the continuous need for network upgrades. “Every five years, we have to upgrade our network. People talk of 3G, 4G, 5G. What does that even mean? We were once 1G. Telecommunication systems are like software. We have to buy the next version,” he explained. He further elaborated on the financial implications, noting, “It is not the towers. It is the equipment we buy from Ericsson or ZTE and we have to issue guarantees. We have to secure credit lines from them. How can we secure them when our company is only worth US$500 million?” This statement implicitly links the delisting decision to the need for greater financial flexibility to secure the necessary capital for these crucial upgrades.
The future vision extends beyond current technological iterations. Masiyiwa announced plans to prepare the business for the “6G revolution, which is going to be triggered by the age of AI.” This forward-looking strategy includes the imminent launch of Econet AI Zimbabwe, a new division expected to employ over 500 people within weeks. Its AI-powered customer experience platform, Yemurai, is already processing 70 percent of incoming customer calls and has been trained in local languages, Shona and Ndebele, with additional indigenous languages under development. This initiative positions Econet at the forefront of technological innovation in the region.
Infrastructure development remains a cornerstone of Econet’s strategy. Masiyiwa highlighted the group’s existing five-megawatt data centre, currently the largest outside South Africa, and the ongoing construction of an even larger 10-megawatt facility. Furthermore, Econet InfraCo is set to spearhead the development of a technology hub on land near Robert Gabriel Mugabe International Airport. “The first thing going into that tech hub is 100 megawatts of power. The equipment begins to arrive next month from China. We do not talk. We do,” Masiyiwa asserted, emphasising the tangible commitment to this ambitious project. He directly linked the shareholder vote to these future endeavours, stating, “That is what you just enabled by your vote. Had the vote not been a yes, this would have died today.”
This strategic restructuring aligns with global trends where telecommunication operators are increasingly separating their infrastructure assets to enhance balance sheet flexibility and improve access to capital. For Zimbabwe, this move by its dominant telecom player signals a critical juncture. Policymakers face the imperative to adapt regulatory frameworks to retain major corporates and foster a conducive environment for investment, or risk a gradual consolidation of capital markets into private structures, potentially limiting retail investor participation and economic democratisation.
Econet Wireless’s delisting, therefore, is not merely a corporate event but a profound indicator of the evolving interplay between corporate strategy, regulatory pressures, and the broader economic development of Zimbabwe. It marks a bold step by a market leader to secure its future amidst technological shifts and market demands, while simultaneously posing significant questions for the nation’s financial ecosystem.
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