When Econet announced in a Circular to shareholders on 4 February 2026, that it would migrate its shares to an Over-The-Counter (OTC) platform on the Victoria Falls Stock Exchange (VFEX) managed by the Zimbabwe Stock Exchange (ZSE), some dismissed it as a routine corporate move.
But beneath the technical jargon lies a strategic shift that could reshape how Zimbabwe’s capital market’s function, and potentially triple the value of some shareholders’ investments.
At first glance, the move appeared administrative. In reality, it represents one of the most significant structural developments in Zimbabwe’s capital markets in recent years and a strategic turning point for Econet, investors, and the exchange itself.
For years, Econet has argued that its shares are materially undervalued on the ZSE due to low trading volumes, limited liquidity, and a thin market that struggles to reflect the company’s true fundamentals.
In markets where price discovery depends on active trading, a lack of buyers and sellers can depress prices — sometimes far below intrinsic value. Econet believes its fair valuation could be many times higher than its current market price, but the prevailing market structure has not allowed that value to be realised.
By moving to an OTC platform, Econet gains greater flexibility over how its shares are traded. Unlike a traditional exchange where prices are determined purely by supply and demand, an OTC framework allows the company to set a reference or minimum price at which its shares can be bought or sold.
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Crucially, Econet can also act as a buyer of last resort, buying back shares at that minimum price if shareholders cannot find buyers. This effectively creates a floor price, reducing downside risk for investors.
For minority shareholders, this could be transformative.
For example, a shareholder currently holding 1 000 shares that might fetch only about US$80 at prevailing market prices could see that value rise to US$240 or more under an OTC floor price — with the company itself guaranteeing that price.
This offers investors better valuation for their holdings, greater certainty and reduced volatility, and improved confidence that their shares are not trapped in an illiquid market.
Pension funds and other institutional investors have long worried about liquidity in Zimbabwe’s equity market. Large holdings are difficult to sell without depressing prices, and asset valuations can lag economic reality.
The OTC structure addresses both concerns.
Asset values on their balance sheets can rise significantly, while liquidity is preserved through structured trading and potential buybacks. This is particularly important for pension funds, whose asset valuations directly affect retirement benefits and regulatory compliance.
At first glance, Econet’s move might appear to be a loss for the ZSE.
But the alternative scenario was far worse.
The majority shareholder, Econet founder and Group Chairman Strive Masiyiwa, could have exercised his right to buy out minority shareholders and delist Econet entirely. That would have removed one of the exchange’s largest and most influential listings, severely weakening the market.
Instead, by facilitating an OTC option, the ZSE retains Econet within the domestic capital market ecosystem, keeps brokers involved in executing trades, and preserves investor participation and market relevance.
What could have been a delisting crisis is instead becoming a structured evolution of the market.
Interestingly, the move also signals a more inclusive vision. Rather than pushing out small shareholders, the Econet founder appears keen for them to remain — and potentially for their numbers to grow.
In a market often characterised by zero-sum outcomes, this is one of the rare cases where all stakeholders stand to benefit.
That is why Econet’s migration to the OTC platform is not just a technical shift — it is a landmark development for Zimbabwe’s capital markets.