Digital banking boosts EcoCash Holdings' revenue b...

Digital banking boosts EcoCash Holdings' revenue by 64% in FY24

Nyashadzashe Ndoro

Chief Reporter

EcoCash Holdings has defied economic odds and posted impressive financial results for the year ended February 29, 2024, with digital banking emerging as a key driver of growth.

The company's revenue surged by 64% to ZWL$874.7 billion, driven by significant growth in digital banking services, mobile money transactions, and innovative insurance solutions, while profit for the year surged by 423% to ZWL$287.3 billion.

According to the Board Chairperson's Sherree Shereni's statement, the company navigated a dynamic operating environment characterised by evolving market trends and regulatory changes.

Despite these challenges, EcoCash Holdings remained agile and adaptive, capitalising on emerging opportunities while addressing challenges to sustain its leadership in the digital financial services sector.

The Scheme of Reconstruction, which was approved by shareholders on April 17, 2024, will see all non-banking assets transferred from EcoCash Holdings Zimbabwe Limited to Econet Wireless Zimbabwe Limited. The banking unit, Steward Bank, will remain under EcoCash Holdings and has been classified as continuing erations in the audited Financials under review.

Shereni stated that Steward Bank has been at the forefront of competitiveness in the banking industry, pushing boundaries to provide innovative banking solutions. The bank has observed considerable growth in the adoption of USD banking services, with VISA card transaction values achieving a 115% increase. The increasing prevalence of USD transactions in the economy has been followed by considerable growth in FCA accounts.

The company's mobile money business experienced consistent growth in customer base, transaction volumes, and values, particularly for USD transactions. EcoCash also reintroduced Kashagi loans in USD, making the loan application process instant and hassle-free.

The short-term insurance business, Moovah, has forged strategic partnerships to enhance the efficiency of insurance claim resolutions, particularly for vehicles. The number of customer touch points for vehicle insurance has increased from 150 to 250 by the end of FY24, resulting in an increase of their market share.

Vaya Technologies has focused on nurturing anchor businesses in Healthtech, Agritech, and On-Demand Services.

They have expanded their offerings and delivered innovative solutions in these sectors.

The Board has decided not to declare a dividend for the period under review as they continue to assess the economic environment.

In her statement, Shereni expressed gratitude to customers, business partners, shareholders, and other stakeholders for their unwavering support. She also commended EcoCash Holdings employees, management, executive team, and fellow directors for their effort during the year under review.

"Their unwavering passion, commitment, and dedication have been pivotal to ensuring our continuous growth And prosperity".

Looking ahead, Shereni says the company is poised to drive a digital banking expansion as it invests in technologies to enhance operational efficiencies and increase the product offering to customers. The businesses being transferred to EWZL post the scheme of reconstruction will leverage on the MNO customer base and technologies to scale up and increase operating efficiencies through leveraging on synergies.