Strive Masiyiwa, the founder of Econet Wireless, has driven
a major shift in Zimbabwe’s capital markets, as the Victoria Falls Stock Exchange (VFEX) has overtaken the
132-year-old Zimbabwe Stock Exchange in market value following the $1 billion
listing of his infrastructure company, Econet InfraCo.
- Strive
Masiyiwa’s Econet InfraCo is listed on the VFEX, valuing it at $1 billion. - This
listing pushed the US dollar-denominated VFEX past the 132-year-old
Zimbabwe Stock Exchange (ZSE) in total market value. - VFEX
was created in 2020 to attract hard-currency investments and now offers
more stable pricing and liquidity compared to ZSE. - Econet
Wireless shifted key assets to VFEX amid regulatory scrutiny and initial
shareholder resistance over delisting terms.
The VFEX, created in 2020
during a currency crisis to attract hard-currency investment, surpassed the
Zimbabwe Stock Exchange in total market capitalisation after Econet InfraCo
listed on March 31, according to Bloomberg data reported on April 16.
The
listing values the infrastructure spin-off at $1 billion and accounts for
nearly a quarter of VFEX’s total market value, underscoring its rapid rise.
The development signals a broader shift away from the
Zimbabwe Stock Exchange, where investors have long argued that local currency
volatility and capital controls distort valuations.
In contrast, the VFEX
operates entirely in US dollars and is designed to attract regional and
international investors, offering more stable pricing and improved liquidity.
Econet restructuring reshapes capital flows
Masiyiwa’s move carries significant symbolic weight.
Econet
Wireless, once the ZSE’s largest and most liquid counter since 1998, has now
shifted key assets to the VFEX through a restructuring that has drawn both
investor debate and regulatory scrutiny.
Shareholders initially challenged the
delisting terms earlier this year before revised valuation processes allowed
the transaction to proceed.
Econet InfraCo now holds the group’s tower infrastructure,
fibre assets, and expanding data centre operations.
It has also been positioned
as a central vehicle for Masiyiwa’s broader investment plans in Zimbabwe,
including the proposed Econet Tech City near Harare Airport, a 40-villa luxury
resort in Victoria Falls, and additional data centre expansion within the Tech
City precinct.
The VFEX milestone has intensified pressure on the Zimbabwe
Stock Exchange, which has seen several listed firms consider migration to the
newer platform. – Business Insider Africa