In a move set to redefine the regional corporate landscape, Econet Wireless has officially valued its newly formed infrastructure wing, Econet InfraCo, at US$1 billion. The group is preparing to list the entity on the Victoria Falls Stock Exchange (VFEX), a move that would represent the largest Initial Public Offering (IPO) in the history of Zimbabwe’s capital markets.
By spinning off its infrastructure, power, and real estate assets, Econet is following a global “asset-light” trend seen in major mobile operators, while uniquely bundling in a massive property and renewable energy portfolio.
The published circular provides a rare look at the sheer scale of Econet’s underlying assets. The group’s total valuation is now viewed through a dual lens:
- Econet Wireless (Core): Implied market capitalization of approximately US$507 million.
- Econet InfraCo: An independent valuation of US$1 billion, as determined by external financial advisors.
This billion-dollar figure is anchored by three primary pillars: passive telecommunications infrastructure (towers), a vast real estate portfolio, and rapidly expanding renewable energy assets.
The listing on the US dollar-denominated VFEX will be done by introduction. This means the company isn’t seeking immediate fresh capital from the public; rather, it is issuing shares directly to existing shareholders to unlock and “crystallize” the value of these assets.
The ZSE Transition Condition
There is a significant caveat to this deal: Econet has stated it will only proceed with the InfraCo listing if shareholders approve a transition of the core Econet Wireless stock from the Zimbabwe Stock Exchange (ZSE) main board to an Over-the-Counter (OTC) system.
- The Goal: To protect shareholder value by allowing the company to set a “minimum price” for its shares, shielding them from the volatility often seen on the main board.
- Governance Note: The ZSE has precluded the controlling shareholder from voting on this specific transition to ensure minority interests are represented.
Once independent, InfraCo will move beyond merely serving its parent company to becoming a national infrastructure powerhouse:
| Segment | Strategic Focus |
| Passive Towers | Will maintain a long-term anchor tenancy with Econet Wireless, ensuring stable, USD-denominated revenue. It will also pursue infrastructure-sharing deals with other operators. |
| Real Estate | Focus on high-growth potential property developments, including the massive 1,000-acre Econet Industrial Park near Harare’s main airport. |
| Power & Energy | Transitioning from purely internal power solutions to a national energy player, leveraging its nationwide site network to provide renewable energy to external customers. |
A key highlight of the spinoff is the Econet Industrial Park. This 1,000-acre project signals InfraCo’s ambition to move into large-scale logistics and industrial infrastructure, diversifying away from traditional telecommunications. By separating these capital-intensive assets from the agile, service-oriented mobile business, Econet aims to attract specialized investors who are specifically interested in long-term infrastructure and real estate yields.
