EcoCash back to profitability
RYAN CHIGOCHE
Diversified smartech group, EcoCash Holdings Zimbabwe, bounced back to profitability for the year to February 28, 2022 recording net returns of ZWL$1.3bn from a loss position of ZWL$1.7bn in the previous year on the back of an increase in topline.
EcoCash Holdings, which operates mobile money unit Ecocash, Steward Bank, Ecosure and VAYA, among other units, reported a 26% topline increase to ZWL$29.9bn in the period under review from ZWL$23.8bn in the previous year.
EBITDA margin improved from 15% to 18% in the reported period driven by the group’s relentless focus on cost optimisation.
The group narrowed its exchange losses to ZWL$1.2bn from ZWL$6.3bn reported in the prior year.
Board chairperson, Sherree Shereni, said the group was looking to expand its fintech solutions to tap into various sectors.
“The group is optimistic about the future and will drive financial inclusion by leveraging the power of our digital platforms and partnerships.
“Our diversified group will continue to produce cutting-edge inclusive solutions and will expand our fintech solutions to agriculture, education, healthcare, and financial services, through the adoption of artificial intelligence, big data, blockchain, and machine learning,’’ Shereni said.
The fintech business unit constitutes about 80% of the total group revenue while within the fintech business unit, 72% of the revenue comes from the mobile money transfer EcoCash.
The insurtech division contributed 14%, down from the previous year’s 15% to the total revenue, and Vaya Technologies ended the year with a 6% contribution.
The group aims to increase and diversify revenue streams through the modification of the units operating models.
Its banking unit, Steward Bank, deployed a new core banking system with enhanced features in the reported period as the bank also complied with the minimum capital requirement set by the regulator within the set timeline of 31 December 2021.
In the outlook, Shereni said the group will continue to adopt mitigatory measures, within the bounds of the country’s laws, to minimise the adverse impacts of the challenging operating environment.
