Zimbabwe’s telecoms sector is on the brink of a historic capital markets moment as Econet Wireless prepares to spin off and list its infrastructure arm, Econet InfraCo, at a headline valuation of US$1 billion.
The jaw-dropping figure positions the transaction as potentially the largest IPO in the country’s history and one of the most consequential restructurings since the operator first joined the Zimbabwe Stock Exchange (ZSE).
Founded by Zimbabwean telecoms billionaire Strive Masiyiwa, Econet’s 1998 ZSE listing symbolised a new era of private sector telecoms investment.
Nearly three decades later, the group is once again reshaping the market, this time by separating its capital-intensive infrastructure assets to unlock value and align with a global telecoms trend increasingly visible across Africa.
At the heart of the deal is a revaluation of Econet’s underlying assets. According to the shareholder circular, the group’s implied structure now comprises two pillars: Econet Wireless’ core mobile and digital services business, valued at roughly US$507 million, and the newly independent InfraCo, valued at US$1 billion.
The infrastructure unit consolidates towers, property holdings and renewable energy assets, segments traditionally hidden within the telecom balance sheet.
“This reflects the intrinsic value of the Group’s real estate, passive telecommunications infrastructure and renewable energy assets,” Econet said in its circular. It argues that the separation allows infrastructure to be priced and managed on its own growth fundamentals.
InfraCo will debut on the US dollar-denominated Victoria Falls Stock Exchange by introduction, meaning no fresh capital is raised immediately.
Instead, shares are distributed to existing investors to crystallise value while giving the new entity freedom to attract specialised infrastructure capital over time.
Strategically, InfraCo is designed to become more than a landlord to its parent. A long-term anchor tenancy with Econet Wireless ensures stable, USD revenues from tower infrastructure, while management plans to pursue infrastructure sharing with other operators.
Its real estate ambitions are anchored by the proposed 1 000-acre Econet Industrial Park near Harare, effectively a data, logistics and industrial ecosystem that could support future digital infrastructure expansion.
The energy division is expected to evolve from internal site power solutions into a broader renewable energy platform serving national clients.
The listing is tied to a shareholder vote that would see Econet Wireless delist from the ZSE main board and migrate to an over-the-counter platform, a move the company says is aimed at protecting shareholder value amid persistent valuation discounts compared to African telecom peers that have already separated tower assets.
By carving out its infrastructure into a standalone, dollar-denominated vehicle, Econet joins regional heavyweights, MTN Group, Vodacom, Airtel Africa and Orange Middle East & Africa, that have unlocked infrastructure value to power digital expansion.
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