Econet Wireless Zimbabwe Limited has issued a cautionary announcement to its shareholders, signalling the start of a strategic review aimed at addressing concerns over the company’s undervalued share price on the Zimbabwe Stock Exchange.
In the statement dated December 3, 2025, Econet’s Board highlighted that the company’s current market valuation is “grossly undervalued in relation to the intrinsic value of the Company’s operations and infrastructure assets.”
The under-valuation, the company said, has affected its ability to secure competitively priced funding, limiting investments in critical network infrastructure and technology upgrades.
“The misalignment of the Company’s market capitalisation and its intrinsic value has resulted in the erosion of shareholder value as Company’s market capitalisation does not reflect the growth in business,” the statement read.
To tackle this, Econet has initiated an evaluation of potential corporate actions that could “unlock shareholder value, improve access to capital, and strengthen the Company’s long-term competitiveness.” While the specifics of these corporate actions are yet to be disclosed, they could include capital restructuring or strategic transactions.
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“The outcome of the evaluation process may have a material effect on the price of the Company’s securities,” reads the statement.
Shareholders and investors have been urged to exercise caution when dealing in the company’s securities until further updates are issued.
The advisory comes as Zimbabwe’s capital markets continue to face challenges from inflation and currency volatility. Despite the tough macroeconomic environment, Econet remains one of the country’s largest telecommunications firms, with extensive infrastructure and a significant customer base.
The strategic review is being supported by TN Financial Services (Pvt) Ltd as lead financial advisor, with Bard Santner Markets Inc. serving as sponsoring broker.
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