Zimbabwe Stock Exchange listed firm EcoCash Holdings says it will continue investing in its operations as it remains dedicated to bringing innovation to the country.
In its third quarter trading update released this week the company said, “We will continue to invest in our technology infrastructure and our people as we position ourselves to seize opportunities as they emerge in the market.
“We are optimistic about the future and remain dedicated to driving innovation and growth in the Digital Financial Services landscape.”
This came after the group recorded third quarter revenue of $182,9 billion, an 83 percent increase in inflation adjusted terms, compared to $99,8 billion realised in full year 2023.
Divisional performance saw EcoCash, the mobile money business, continue to sustain an upward trend in growth on its USD Wallet services.
According to Charmaine Daniels, EcoCash group corporate secretary, “Customer activity surged significantly, compared to the same period in 2023. Transaction volumes experienced a six-fold increase, on the back of increased wallet funding.”
It is a result of EcoCash’s strategic emphasis on expanding the mobile money distribution network proving successful and resulting in improved accessibility for customers. Resultantly the mobile money footprint increased by 29 percent quarter on quarter.
Mobile money third-quarter revenue grew by 82 percent as compared to the same period in 2023.
The banking services division which houses Steward Bank, experienced considerable growth since the adoption of USD banking services.
Mrs Daniels said, “Notably, VISA transaction values, USD loans, and FCA accounts all recorded over 35 percent growth, compared to third quarter 2023 performance. During this quarter, the Bank introduced the VISA Globetrotter II card, an enhanced version of the existing VISA card.”
According to the company, this upgraded card features contactless functionality, enabling faster payments and seamless compatibility with international payment platforms.
The division’s revenue for the quarter increased by 55 percent compared to prior year.
“Steward Bank is compliant with Tier 1 capital requirements as prescribed by the Reserve Bank of Zimbabwe,” she added.
EcoCash said the InsurTech business focused on enhancing its overall customer experience in the quarter under review.
“Moovah, the short-term insurance business, held engagements and partnered with service providers toensure swift resolution of insurance claims as well as maintain high service standards for customers’ vehicles,” continued Mrs Daniels.
In the quarter under review, EcoSure, the life insurance business, grew its presence in rural areas through strategic partnerships.
The company secretary added that, “Recognizing the potential and untapped market in rural communities, EcoSure increased its geographic footprint through extending services to these regions. This expansion is bringing insurance services and convenience closer to the people and will ensure enhanced service to our customers including those in marginalised communities.”
The synergies with the mobile money business also contributed to a rise in the USD denominated business, growing by 37 percent and 168 percent for the short-term and life business, respectively, when compared tothe third quarter of 2023.
“The Net Premium Written for the quarter increased by 116 percent compared to prior period,” she said.
EcoCash recorded sustained growth in volumes across its other business segments, in particular on-Demand Services and HealthTech which resulted in a 166 percent growth in revenues.
“Leveraging group synergies, the business offers bundled products and services in conjunction with other group offerings, an approach that has helped to capitalize on the strengths and complementary nature of various business units, ultimately enhancing the overall value proposition for customers,” the company secretary added.
By embracing innovation and pursuing emerging trends in On-Demand Services and health technology, EcoCash has positioned itself to capture new opportunities and meet evolving customer demands.
The belief is that the ability to leverage group synergies and offer bundled products and services not only strengthens the group’s growth strategy but also enhances its competitive advantage in the market.
“Moving forward, these initiatives are expected to continue driving growth and delivering positive results for the EcoCash Holdings group,” the company said.
Meanwhile the company is trading under a cautionary as it seeks to transfer all non-banking assets toEconet.
In a statement, Mrs Daniels said, “EcoCash Holdings Zimbabwe and Econet Wireless Zimbabwe being companies under the same control, are engaged in negotiations that may result in the transfer of some non- banking assets from EcoCash Holdings Zimbabwe Limited to Econet Wireless Zimbabwe Limited in exchange for Econet shares that may be distributed to the EcoCash Holdings Limited Shareholders.”
The company assured its shareholders that the envisaged scheme of reconstruction will not result in the de-listing of EcoCash or Econet.