Table of Contents
Zimbabwean billionaire Strive Masiyiwa’s telecom outfit Econet Zimbabwe is a top-performing company so far in 2021, with impressive year-to-date returns for shareholders.
Recently conducted research by Billionaires.Africa revealed that the market price of Econet Zimbabwe’s shares has increased from ZWL9.4951 ($0.0295) on Dec. 31, 2020, to ZWL50.1277 ($0.1557) as of press time.
This translates to a 427.9-percent gain for shareholders since the start of the year.
With the price appreciation, the company’s market capitalization has increased from ZWL24.5 billion ($76.3 million) at the start of the year to ZWL129.8 billion ($403.2 million) at the time of drafting this report.
A $5,000 investment in Econet Zimbabwe in early 2021 is worth $26,400 today
Local or foreign investors with access to the shares of the company listed on the Zimbabwe Stock Exchange would have seen a 428-percent gain since the start of the year if they had purchased Econet Zimbabwe shares in January 2021.
This suggests that a $5,000 (ZWL1.6 million) investment in Econet Zimbabwe at the start of the year is now valued at $26,400 (8.5 million), which is more than five times the initial investment.
Meanwhile, Masiyiwa, who founded the company in 1998, has seen the market value of his stake increase by ZWL46.0 billion ($142.8 million) so far this year.
The billionaire derives a total wealth of ZWL56.7 billion ($176.2 million) from his 42.7-percent stake in the telecom service provider.
What’s worth knowing about Econet Zimbabwe
Shares in Econet Zimbabwe rank 12th on the local bourse in terms of year-to-date returns for investors. However, analysts and investors believe shares in the company still hold upside potential.
A recent report revealed that earnings are expected to improve as the telecom giant begins recovering from foreign exchange losses incurred over the past two years.
The telecom company recorded a resilient financial result at the end of its 2021 financial year, posting a profit of ZWL836.53 million ($2.6 million).
The growth in profit came off the back of a 23-percent hike in its revenue from ZWL28.53 billion ($88.60 million) last year to ZWL35.10 billion ($109 million).
