The biggest stock on the local exchange might jump ship. Econet Wireless plans a voluntary delisting from the Zimbabwe Stock Exchange, which would pull its roughly seventeen billion ZiG market value off the board. The company cited its shares trading at a major discount compared to similar African firms as the key reason. Under the proposal, its infrastructure assets would become a separate entity called Econet InfraCo, listed on the US dollar Victoria Falls exchange instead.
Analysts call this a potential disaster for the main bourse. Econet is a core holding for pension funds and a huge source of daily trading activity, often accounting for most of the market's liquidity alongside Delta. Its exit would sharply reduce the exchange's total value and trading volume, hurting stockbrokers and the exchange's own revenue from fees. The move continues a bad trend of companies leaving the ZSE far faster than new ones join, with several names exiting or moving to the VFex this year alone. Experts warn it would leave investors with fewer quality options and increase risk through higher market concentration.
Some suggest a compromise could be possible. Economists argue that authorities might engage Econet on specific issues like currency rules or valuation methods to keep it listed. Shareholders could also vote against the plan at an upcoming meeting, though the new InfraCo structure is reportedly already set up. Without a solution, the departure of such an anchor stock would damage investor confidence and signal deeper problems with the local market's appeal.
Analysts call this a potential disaster for the main bourse. Econet is a core holding for pension funds and a huge source of daily trading activity, often accounting for most of the market's liquidity alongside Delta. Its exit would sharply reduce the exchange's total value and trading volume, hurting stockbrokers and the exchange's own revenue from fees. The move continues a bad trend of companies leaving the ZSE far faster than new ones join, with several names exiting or moving to the VFex this year alone. Experts warn it would leave investors with fewer quality options and increase risk through higher market concentration.
Some suggest a compromise could be possible. Economists argue that authorities might engage Econet on specific issues like currency rules or valuation methods to keep it listed. Shareholders could also vote against the plan at an upcoming meeting, though the new InfraCo structure is reportedly already set up. Without a solution, the departure of such an anchor stock would damage investor confidence and signal deeper problems with the local market's appeal.
