Cassava records 70 pc improvement
Cassava Smartech Zimbabwe Limited, trading as Ecocash Holdings Limited, says improvements in transactional activity buoyed its revenue performance for the quarter to August 31, 2021, which was 70 percent ahead of same period last year.
Of the business units, banking firm — Steward Bank paced the fastest recording a revenue growth of 300 percent, largely attributable to higher interest income in line with its growth strategy on interest-earning assets. The bank remains focused on optimizing the Core Banking System implemented during the first quarter.
Company secretary Charmaine Rose Daniels said the group would continue its focus on transactional volumes as it maintains growth.
During the period under review, has been characterised by lockdowns and movement restrictions to limit the spread of the Covid-19 pandemic, which had an adverse impact on businesses. However, the group acknowledged improvements in inflation which cascades to growth in business activity.
“A decline in the month-on-month inflation and relative economic stability present an environment in which business activity could start to recover. As a platform business that supports transactional activity in the economy, this recovery is supportive of improved transactional volumes,” said Mrs Daniels in a trading update for the quarter under review.
“The business remains focused on growing transactional volumes and improving operating efficiencies to maintain the growth in revenues,” she said.
Mobile money business continued on a steady growth trajectory with revenues increasing by 63 percent from the same period last year.
Transaction values and wallet funding were also higher than the same period in the previous year at 25 percent and 54 percent respectively.
“EcoCash, continues to provide customers with unparalleled convenience and to play a key role in the financial inclusion agenda in Zimbabwe,” she said.
According to the trading update, the Insurtech businesses pursued numerous initiatives during the period which resulted in an increase in revenue by 70 percent due to the growth in customers.
The various initiatives that were implemented to reach previously uninsured sectors paid off with an 11 percent and 106 percent growth in the customer base for life business and short-term insurance respectively, from the previous quarter.
Vaya Technologies recorded a 51 percent growth in its operations and on the back of strategic relationships that were established during the period under review.
The strong demand for healthcare services due to Covid 19 pandemic resulted in the Healthtech business also recording revenue growth. The group remains upbeat of maintaining the growth trajectory the ongoing vaccination programme is also expected to result in improved business activity.
Meanwhile, the group’s financial results for the year to February 28 are now expected to be published on or before the 30th of September 2021 after the experiencing delays due to the impact of Covid-19 as well as the need to resolve certain technical accounting matters.