Tinotenda Hove – The proposed voluntary delisting of Econet Wireless Zimbabwe from the Zimbabwe Stock Exchange (ZSE) could mark a turning point for the local bourse, with analysts warning of deep repercussions for market depth, liquidity and investor confidence.

In a cautionary statement issued on Tuesday, Econet announced plans to exit the ZSE and restructure its operations by separating its infrastructure assets into a new entity, Econet Infrastructure Company Limited (Econet InfraCo). The infrastructure unit would be listed on the US dollar-denominated Victoria Falls Stock Exchange (VFEX).

Econet’s board said the move was driven by what it described as a “significant discount” in the company’s valuation compared to its African peers, a situation it believes undermines shareholder value.

Market analysts say Econet’s potential exit would expose long-standing structural weaknesses at the ZSE, which have already contributed to a steady stream of delistings in recent years. As the exchange’s largest and most liquid counter by market capitalisation, Econet is widely regarded as the anchor stock of the bourse.

“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 noted that Econet is among the most actively traded stocks on the market, with a 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,” Mr Gwadu said.

According to him, pension funds, insurance companies and unit trusts depend heavily on large-capitalisation stocks such as Econet to meet asset allocation, liquidity and risk management requirements.

“The delisting would force institutions to crowd into a smaller pool of counters or increase exposure to illiquid assets, heightening concentration and liquidity risks,” he said.
However, Mr Gwadu urged patience, arguing that the restructuring could ultimately unlock shareholder value.

“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 described the proposed delisting as a major threat to tradability and liquidity on the ZSE.
“Econet used to contribute around 60 to 70 percent 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 added that reduced liquidity would also affect stockbrokers and other market participants whose business depends on active 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 further noted that Econet is one of the blue-chip counters that generate significant revenue for the ZSE, the market regulator and key institutions such as the Chengetedzai Depository Company through fees and levies.

“The only way this proposal can be stopped is if shareholders at the planned extraordinary general meeting vote against the delisting,” Mr Rukarwa said.

“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 VFEX 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 added.

Equity Axis, a stockbroking and equities research firm, said Econet’s proposed exit would deepen a worrying trend in which delistings continue to outpace new listings on the ZSE, steadily eroding market breadth.
In 2025 alone, delistings have included the Old Mutual Top Ten ETF, Khayah Cement, Truworths and National Tyre Services.

Over the past five years, major exits have featured Padenga Holdings, Axia Corporation and Bridgefort Capital, alongside several high-profile migrations to VFEX by companies such as Innscor Africa, National Foods, Simbisa Brands and Zimplow.

“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,” Equity Axis said.

Money & Moves founder and analyst Mr Tinashe Mukogo also warned of broader consequences for the capital market ecosystem.

“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?” he said in a post on X.

ZSE chief executive Mr Justin Bgoni has maintained a more optimistic outlook, saying market activity on both the ZSE and VFEX is expected to improve in 2026, supported by increased local and foreign investor participation and new listings, particularly in mining and real estate investment trusts.
Nevertheless, economists argue that authorities could still engage Econet to address the root causes of the proposed delisting.
Economist Mr Walter Mapfumo said reforms around currency conversion, capital mobility and valuation credibility could help retain major counters on the ZSE.

“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.

Market analyst Mr Rufaro Hozheri said shareholders could still push back if they believe the move destroys value.

“Econet will own 70 percent of Econet InfraCo, while minorities will hold 30 percent and receive some cash compensation,” he said, adding that the new entity has already been established with management in place, pending approval at an extraordinary general meeting scheduled for next month.