EcoCash Holdings Zimbabwe says overregulation has remained a major burden on the business, hampering the group’s growth.
Board chairperson, Sherree Shereni said some of the revenue streams remain closed.
“The growth of our mobile money business has been severely constrained due to regulated transaction limits, regulated tariffs, and the continued suspension of some of our revenue-generating services,” Shereni said.
This comes following the closure of over 20 000 EcoCash agents’ closed shops, who were accused by the Reserve Bank of Zimbabwe of fuelling parallel market exchange rates.
However, EcoCash delivered a strong performance in the FY2022.
Revenue for the group grew 26% to ZWL$ 29.9bn in the period under review from ZWL$ 23.8bn reported in the prior comparative period.
The Fintech businesses remained the largest contributor to revenue, at 80% from 77% in 2021.
The contribution by the Insurtech business marginally declined to 14%, from prior year’s 15%,.
VAYA Technologies contributed 6%.
The group’s EBITDA margin improved from 15% to 18% because of the relentless focus on cost optimisation.
Shereni said the group will remain focused on revenue growth, operational efficiencies, and optimisation of the balance sheet.
Foreign currency exchange losses reduced from to ZWL$ 1.2bn during the current year ZWL$ 6.3bn in 2021.
EcoCash operates a well-diversified business portfolio composed of; Fintech, Insurtech, On-Demand Services, e-Commerce, Agritech, Healthtech, Edutech, Steward Bank and VAYA Services.
“This unique, yet cohesive composition makes EcoCash Holdings’ business model a rare jewel.
“This has allowed us to navigate these operational difficulties. We remain committed to providing digital solutions to the evolving needs of our diverse client base by bringing them the convenience they need,” Shereni said.
EcoCash continues to prioritise product innovation and this has allowed us to provide relevant digital solutions that address consumer needs.
Steward Bank successfully deployed a new core banking system with enhanced features to drive the digital banking model.
Leveraging the upgrade, the square banking app was also upgraded as well as the online banking offer.
Steward Bank also complied with the minimum capital requirement set by the regulator within the set timeline of December 31 2021.