The proposed delisting of Econet Wireless Zimbabwe from the Zimbabwe Stock Exchange could mark a watershed moment for the bourse if it succeeds, with potential far-reaching implications for market depth, investor confidence and market relevance.
Econet Wireless, in a cautionary statement on Tuesday, announced plans to voluntarily delist from the ZSE while carving out its infrastructure assets into a new entity called Econet Infrastructure Company Limited (Econet InfraCo).
The new entity would be listed on the US dollar-denominated Victoria Falls Stock Exchange (VFEX). Econet’s board has said the primary reason for the delisting is the company’s “significant discount” in valuation compared to its African peers.
Analysts contend that, as the ZSE’s largest and most liquid counters by market capitalisation, Econet’s potential exit would not only remove a liquid stock but also expose structural issues that have increasingly driven several delistings in recent years.
Econet is widely regarded as the anchor stock of the ZSE and consistently ranks among the top contributors to total market capitalisation, daily turnover and foreign investor participation.
For many institutional investors, pension funds and asset managers, Econet functions as a core holding for portfolio anchoring, liquidity management and benchmark tracking.
“Econet accounts for a significant share of the ZSE’s total market value. Its removal would result in an immediate contraction of headline market capitalisation, undermining the exchange’s scale and visibility both locally and regionally,” said financial analyst Mr Malone Gwadu.
He said more critically, Econet was one of the most actively traded stocks due to its huge market capitalisation, hovering around $18 billion.
“The ZSE will suffer reduced trading activity due to Econet’s exit and also reduced investor options for trading.
“This speaks to the need for the ZSE to properly engage listed companies together with regulators and all stakeholders to address concerns that counters have before a hard decision is taken to delist,” he said.
Mr Gwadu noted that pension funds, insurance companies and unit trusts rely on large-cap stocks such as Econet to meet asset allocation, liquidity and risk management requirements.
As a result, he said the delisting would force institutions to either crowd into a smaller pool of counters or increase exposure to illiquid assets, heightening concentration and liquidity risks.
However, Mr Gwadu said there was need to be patient and observe what the restructuring exercise was trying to achieve.
“Unlocking and protecting shareholder value is quite key in inspiring investor confidence, and this is what they are trying to do by delisting on ZSE, entity restructuring and streamlining to bring about Econet InfraCo, which will be listed on VFEX to ensure shareholder value is priced accurately due to concerns of under-pricing of their stocks on ZSE,” he said.
Investment analyst Mr Enock Rukarwa said the delisting was a potentially major blow to tradability and liquidity on the Zimbabwe Stock Exchange platform.
“Econet used to contribute around 60 to 70 per cent of trading liquidity together with Delta Corporation. If you are then going to have a situation whereby that other asset won’t be there, that is a huge blow, especially to the investing public,” he said.
Mr Rukarwa said that liquidity not only affected investors, but also participants, such as the stockbroking fraternity, whose core business is securities trading.
“As a licensed stockbroker, there is a platform to trade on, but there is no liquidity; hence, what is available for trading daily, the cake, will be smaller. That is a huge blow to investors, stockbrokers and even ZSE, the provider of the platform,” he said.
He added that Econet is one of the blue chips that contributed significant revenue for ZSE and fees for the industry regulator through levies, as well as other key players such as Chengetedzai Depository Company and other market securities market intermediaries.
Mr Rukarwa said the only way the proposal could be stopped was if shareholders at the planned extraordinary general meeting voted against delisting.
“It is our hope and prayer that if it’s voted against, value can be restored. But if it succeeds, it is going to be a huge blow to the market participants, the stockbroking fraternity, the ZSE and even the regulator.
“And what will be listed on VFX is not really the business that people were investing in. People are investing in the mobile money operation, and if it’s not there, that becomes a challenge,” he said.
According to Equity Axis, a stockbroking and equities research firm, Econet’s proposed exit perpetuates the trend of delistings outweighing new listings on the ZSE, eroding market breadth and depth.
Delistings in 2025 have included the Old Mutual Top Ten ETF (January), Khayah Cement (May), Truworths (July) and National Tyre Services (effective December 31).
Over the five years to 2025, notable exits have included Padenga Holdings, Axia Corporation and Bridgefort Capital, as well as migrations to VFEX by companies like Innscor Africa, National Foods, Simbisa Brands, and Zimplow. Only a handful of new listings, led byTigere REIT, Revitus Property Opportunities REIT and the ZSE’s self-listing through ZSE Holdings, have attempted to make up for the voids left by the delistings.
“Removing such a pivotal counter as Econet would significantly impair ZSE liquidity in the short term, exacerbate concentration around remaining heavyweights like Delta, widen bid-ask spreads, and exert downward pressure on key indices,” said Equity Axis.
Money & Moves founder and analyst, Mr Tinashe Mukogo, said the proposed delisting could have significant implications for the broader capital market ecosystem.
Posting on his X account, Mr Mukogo said Econet was the second-largest listed company in the country and had one of the most famous Initial Public Offerings (IPOs) in corporate history.
“The complete delisting from the ZSE would result in a 20 percent drop in market capitalisation and remove one of the few high-quality stocks that the average investor could invest in.
“It would also send a negative signal about the exchange itself. If the biggest companies are calling it quits, what about the others?”
ZSE chief executive Mr Justin Bgoni, in a recent interview, said that in 2026, market activity on both the ZSE and the VFEX was expected to increase, driven by heightened participation from both local and foreign investors.
He highlighted that capital markets are also anticipated to deepen as more instruments come to market, particularly through new listings in the mining sector and the continued growth of Real Estate Investment Trusts (REITs).
However, analysts further contend that authorities could engage Econet directly to address specific concerns driving the delisting, particularly around currency conversion, capital mobility and valuation integrity.
Economist Mr Walter Mapfumo said a compromise solution could involve restructuring Econet’s listing, such as enhanced dual-listing mechanisms or adjustments to settlement currency frameworks, allowing the company to retain ZSE exposure while mitigating balance sheet and shareholder risks.
“Improving foreign participation rules, easing capital controls and ensuring consistency in exchange rate policy would strengthen valuation credibility on the ZSE, addressing one of the key motivations for exit,” he said.
Mr Rufaro Hozheri, a market analyst, posting on X, said one of the ways to stop the delisting was for shareholders and institutional shareholders to push back against delisting if they viewed it as value-destructive.
He said Econet would own 70 percent of the Econet InfraCo company and the remaining 30 percent would be owned by the minorities, who would also be offered some cash compensation.
However, he noted that Econet InfraCo has already been set up with management already appointed, only awaiting approval at an extraordinary general meeting next month.-herald
