RYAN CHIGOCHE
Zimbabwe Stock Exchange-listed technology group Cassava Smartech Zimbabwe says its revenue more than doubled in the quarter to May 31, 2021, despite continued uncertainty due to the Covid-19 pandemic.
Company secretary, Charmaine Daniels, said the group was optimistic the trend would be sustained.
“The group’s inflation-adjusted revenues for the three months ended 31 May 2021 more than doubled, compared to the same period last year. We remain cautiously optimistic that this trend will be sustained but are very conscious that a third wave of the pandemic could lead to additional restrictions on people movement and businesses in order to manage the spread of the virus,” Daniels said.
Cassava’s flagship subsidiary, EcoCash’s business experienced steady growth over the period recording a 60% increase in transaction values, largely driven by an increase in wallet funding.
Daniels also said active customers also continued to recover during the period.
Revenue in its banking unit, Steward Bank, remained stable in the reviewed period and is expected to increase going forward following the successful implementation of a core banking system upgrade finalised in April 2021.
The bank’s positive performance was driven by higher transaction values as well as growth in interest-earning assets and the growth of the loan book.
In the outlook, Daniels said the bank expects an increase in transaction volumes post the implementation of the system upgrade.
The Insurtech business also continued on a positive trajectory in the quarter, writing new short term and life insurance policies as it grew the customer base for all insurance products.
New products and alternative payment channels were introduced in the period leading to a doubling of the units short-term insurance customers.
In the outlook, Daniels said the group will be focused on growth and providing more convenient digital solutions to their growing bank of customers as well.
“The group continues to focus on providing convenient digital solutions to the increasing customer demands. The drive towards continued service excellence will remain a focus area in the coming period. The relatively stable macro-economic outlook will augment the revenue growth strategies in the future,” she said.
Cassava Smartech has evolved from a mobile money transfer service to a diversified “Smartech” business.
By offering a solution for customers to complete financial transactions directly from their mobile phone, EcoCash has revolutionised financial inclusion in Zimbabwe, a country where over 65% of the population still reside in rural areas with limited access to financial services, Daniels said.
Today, it is the largest mobile payment platform in Zimbabwe and is used by over 80 percent of the country’s adult population.
The success of EcoCash has unlocked a number of opportunities that characterise the digital economy, and Cassava sees great untapped potential across all areas in which it has expanded, such as insurance, remittances, ride-hailing, and mobile e-Commerce, Daniels said.
