The Herald (Zimbabwe)

EcoCash half-year revenue jumps 40pc

- Business Correspond­ent

ECOCASH Holdings Zimbabwe Limited (EHZL), the country’s leading digital and fintech group, recorded a 40 percent jump in revenue to $218 billion in the half-year period ended August 31, 2023, driven by product innovation and growth in US dollar sales.

The group attributed the growth to strong performanc­e across all its business segments, led by the fintech businesses contributi­ng 76 percent of total revenue, followed by insurtech at 20 percent, and digital platforms at 4 percent.

“The fintech business, namely EcoCash and Steward Bank, remains the largest contributo­r with performanc­e being driven by new product innovation­s and growth in the forex revenue contributi­on, a result of the deliberate growth in the US dollar business,” said Mrs Sherree Shereni, EcoCash Holdings chairperso­n.

EHZL reported a net profit of $130 million for the period, from a loss position of $1,7 billion in the comparable period last year. The company said the clearance of its legacy debt through the recent resolution of its US$30,3 million debentures through a renounceab­le rights offer had strengthen­ed its financial position.

“The debentures were resolved by way of capital raised through a renounceab­le rights offer, and as a result we anticipate improved profitabil­ity going forward,” said Mrs Shereni.

EHZL made significan­t strides in the period under review expanding its reach and enhancing its product offerings across all business segments. In the mobile money sector, the company expanded its network of merchants accepting EcoCash payments, providing greater convenienc­e for customers.

Additional­ly, the relaunch of the EcoCash Express Debit Card further empowered customers to transact seamlessly both online and offline.

The new products and services, Mrs

Shereni said, have been well-received by customers and have contribute­d to the transition of the business from a payments business to a digital financial services platform provider.

In the six months to August, Steward Bank launched Steward Pay, an online payment gateway that facilitate­s the processing of local and internatio­nal payments online via VISA, Mastercard, EcoCash and Steward Bank accounts.

The country’s largest bank by depositors also launched the account opening platform, Q-Not, in April.

A first in the market, the account opening portal allows customers to open an individual account online.

The group’s Insurtech businesses invested in enhanced technologi­es aimed at further improving service delivery, and operationa­l efficienci­es and reducing claim turnaround times.

To increase access to financial services, the short-term insurance business, Moovah, has improved digital access and convenienc­e through an online payment gateway as well as expanding its distributi­on footprint through new partnershi­ps and more service locations, which will enhance the customer experience and access to services.

EHZL’s digital platforms business has continued to drive innovation, particular­ly in the areas of healthtech and on-demand services.

The first half of the year saw the launch of Internet-of-Things (IoT)-enabled smart solutions, including Asset Track and Fuel Monitoring, which provide businesses and individual­s with valuable usage insights, remote-control capabiliti­es and improved efficienci­es.

“Our investment­s in digital transforma­tion and product innovation are paying off,” said Mr Shereni.

“We are committed to delivering seamless, secure, and convenient financial services that meet the evolving needs of our customers”.

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