Econet maintains public status ahead of VFEX migration

Econet Wireless Zimbabwe is ditching the Zimbabwe Stock Exchange for the Victoria Falls Stock Exchange OTC platform, but swears it's staying public with over 50 shareholders.

The company's regulatory status and public designation

• Econet will remain a public company under the Companies and Other Business Entities Act.
• Public companies must have more than 50 shareholders and meet special protection conditions.
• Operations will continue on the VFEX OTC platform, a recognized exchange with billions invested.
• The OTC involves market participants like stock brokers, similar to ZSE trading arrangements.

The guaranteed buyback floor protects minority investors

• Econet is committed to buying back shares in cash at a set reference price.
• The mechanism creates a guaranteed exit floor at a substantial premium to market prices.
• Minority investors get downside protection while keeping upside potential if valuations climb higher.
• Shareholders who sold in the last three years averaged 10 to 20 cents per share.

Why pensioners and long-term investors lost significant value

• Recent shareholders experienced significant losses when selling at effective prices between 10 and 20 cents.
• Some pensioners lost the value of earnings accrued over a lifetime of investment.
• The proposed liquidity mechanism will provide much-needed exit options for minority shareholders.
• Investors who stay will see an immediate uplift in valuation from the mechanism.

What happens at the February shareholder vote

• An Extraordinary General Meeting is scheduled for 26 February 2026 to decide the offer.
• Analysts said Econet seeks value creation while maintaining a broad shareholder base.
• The guaranteed floor price lets investors still sell if they can't find buyers.
• Shareholders will vote whether or not to accept the company's proposal then.