ECONET Wireless Zimbabwe has mobilised US$250 million in foreign currency‑linked assets to underpin an ambitious post‑delisting expansion strategy focused on network upgrades, digital infrastructure, and artificial intelligence‑powered services.
In March, Zimbabwe’s largest telecom operator delisted from the Zimbabwe Stock Exchange after directors concluded its market valuation no longer reflected its underlying performance, capital investments, and growth prospects.
Since then, the company has embarked on a transformation programme to unlock shareholder value and reposition itself as a fully-integrated technology business.
A key pillar was the spin‑off of its infrastructure assets into Econet Infrastructure Company (InfraCo), which listed on the Victoria Falls Stock Exchange in March with a US$1 billion market capitalisation. InfraCo holds all of Econet’s real estate, tower, and power assets.
“The group’s negative working capital position of ZiG2,6 billion is mainly due to foreign currency‑denominated short‑term financing raised to support the ongoing network infrastructure upgrade and a long‑term view to value preservation,” Econet said in its financial year report for the period ended February 28, 2026.
“The directors and management are continuously monitoring and evaluating the operating environment to re‑assess and appropriately adapt its strategies to ensure the continued operation of the group into the foreseeable future.”
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Strategies include negotiating long‑term funding with vendors and funders, aligned with the long‑life nature of network equipment. Borrowings rose 57% to ZiG758 million during the year.
“Bank loans were advanced by various financial institutions from April 2023 through to February 2026 and are denominated in United States dollars. Repayments commenced in May 2023 and will continue until full settlement in November 2028,” Econet said.
Security pledged includes mortgage bonds, cash cover, notarial bonds over network infrastructure, and subordination of shareholder debt.
Another strategy is to continue engaging regulators to align sector costs and tariffs with investment requirements.
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“The group’s exposure to foreign currency‑denominated obligations and negative working capital is mitigated by non‑current financial assets at amortised cost and financial assets at fair value through other comprehensive income with a combined carrying amount of ZiG6,7 billion largely denominated in foreign currency,” Econet said.
“Should the need arise, the non‑current assets can be utilised to generate additional foreign currency to settle the foreign obligations and meet working capital requirements.
“The directors have reviewed the group’s cash flow forecasts to June 30, 2027 and, considering this review, the current financial position and undrawn facilities, are satisfied that the group has access to adequate resources to continue in operational existence for the foreseeable future.”
Total assets grew 36% to ZiG33,3 billion, with property, plant, and equipment rising nearly 40% to ZiG16,57 billion.
“The board is confident that the company is well‑positioned to leverage AI and other emerging technologies, accelerating our transformation into a vertically integrated, agile and resilient digital services provider that will deliver exceptional value to shareholders,” Econet chairman James Myers said.
Exchange rate as at February 28, 2026: US$1: ZiG25,77
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