Zimbabwean telecoms giant Econet Wireless tops the list of African telecom companies that equities traders are interested in, with a 44% upside potential according to Renaissance Capital.

The Strive Masiyiwa founded telecoms giant has more than 9 million subscribers and over 3 million mobile money users registered on its EcoCash system.

However, experts say it is among the most undervalued telecom stocks in Africa, with a share price hovering around 73 US cents on the Zimbabwe Stock Exchange (ZSE) and a market capitalisation of $668 million.

Companies such as Zimbabwe’s Econet Wireless are seen then as providing strong potential for profitability in equities investment, according to Renaissance Capital analysts in a report on the telecommunications sector.

A 7.6% stock gain in Econet during the month of July helped the company’s trade values for the month surge to $5.8 million. Econet is also one of only about four counters on the ZSE that foreign investors are mostly interested in.

Analysts at IH Securities have further said that investors are attracted to Econet because of its positioning in the Zimbabwean market as well as its management, which is considered to be competitive and growth focused.

As a result, “defensive stocks with good management teams, regional diversification and with the ability to secure cheap lines of capital” are expected to continue attracting interest from investors.

Last week, Econet sealed a $150 million investment pact arranged by the African Export-Import Bank (Afreximbank).

The money is planned to help drive the company’s mobile banking and solar energy projects and also to help it refinance existing debt arrangements.