Zimbabwe’s richest man Strive Masiyiwa has experienced a significant reduction in his fortune over the past 10 days, following a recent pullback in the shares of his publicly traded companies on the Zimbabwe Stock Exchange (ZSE).
The decline amounts to a staggering US$100 million wealth loss in 10 days, with Masiyiwa’s net worth dropping from US$2 billion on 5 April to US$1.9 billion on 15 April, according to Forbes, a US business magazine that monitors the world’s ultra-high net worth individuals.
The decline in Masiyiwa’s wealth figures can be attributed to the recent market value drop of his stake in Econet Zimbabwe and EcoCash Holdings.
The fall follows a remarkable achievement earlier in the year, where his net worth soared by US$800 million between 1 January and 4 April, rising from US$1.2 billion to US$2 billion.
Masiyiwa, derives a significant portion of his billion-dollar fortune from his holdings in Econet Zimbabwe and EcoCash Holdings.
As the country’s leading telecom services provider, Econet Zimbabwe represents a vital asset in Masiyiwa’s investment portfolio, where he holds a substantial 52.85-percent stake.
Similarly, he holds a 30-percent stake in EcoCash Holdings, a smart technology company that leverages digital and financial technologies to promote financial inclusion, economic empowerment, and shared economies.
The recent market trends have impacted his holdings, with Econet Zimbabwe’s share price experiencing a 42.14-percent decline, from $250.7 on 4 April to 165.1.
Similarly, EcoCash Holdings’ share price fell by 39.3 percent, from $67.96 to $41.25.
Econet Wireless Zimbabwe is taking decisive steps to drive growth and build trust with its shareholders by considering a proposal to hold an extraordinary general meeting of members.
The meeting would focus on a renounceable rights issue of new ordinary shares, with the aim of raising approximately US$30.3 million in capital.
The proposed rights issue represents a critical step for the company as it seeks to position itself for future growth while exploring strategic opportunities to maximize value for its shareholders and stakeholders.
Through this move, Econet Wireless Zimbabwe is demonstrating a firm commitment to enhancing shareholder value and remaining at the forefront of Zimbabwe’s telecommunications industry.- Billionaires.Africa