Strive Masiyiwa’s Econet Zimbabwe to raise $30.3 million

Econet Wireless Zimbabwe Limited, a prominent telecommunications services provider led by Zimbabwean billionaire Strive Masiyiwa, is reviewing proposals to convene an extraordinary general meeting of members.

The primary agenda of the proposed meeting is to deliberate upon a renounceable rights issue of new ordinary shares aimed at raising about $30.3 million in capital.

The proceeds from this offering are intended to redeem the outstanding Debentures in the Capital of the Company, which were issued in March 2017 and are due for redemption in April 2023.

Econet Wireless has cautioned shareholders and the investing public to carefully consider their trading decisions concerning the company’s securities until complete details of the proposed rights issue are publicly released.

The company will also issue an announcement to debenture holders prior to the retirement date for the redemption of these debentures.

The proposed rights issue is expected to significantly bolster Econet Wireless’ financial position, fortifying the company’s capacity to meet its obligations, while further exploring strategic opportunities to maximize value for its shareholders and all stakeholders involved.

Econet Zimbabwe is a subsidiary of the Econet Group, a diversified telecommunications enterprise that has been operational for more than two decades, with a presence in Africa, Europe, South America, and East Asia.

Masiyiwa commands a significant equity holding of 52.85 percent in Econet Zimbabwe, cementing his position as Zimbabwe’s wealthiest businessman and one of the world’s most affluent Black billionaires, with an estimated net worth of $2 billion.

Econet Group has announced that its inflation-adjusted revenue for the first nine months of its 2023 fiscal year increased by 9 percent in comparison to the same period last year.

This growth was primarily attributed to voice and data volumes but was partly dampened by tariffs that were below inflation.

The company has noted a positive trend in the proportion of U.S. dollar-denominated sales to local customers.

However, Econet Group has also observed that other consumer-facing businesses are now selling more than 60 percent of their products and services in U.S. dollars.