Chairperson’s statement
INTRODUCTION
The group realigned its strategy to better navigate the changing business environment and realise the emerging opportunities presented by changes in the market. We successfully executed our strategy to reposition the Company in the economy in our various business segments.
BUSINESS HIGHLIGHTS
We continued our nationwide expansion within the mobile money sector, as part of our commitment to enabling a digitally connected future that leaves no Zimbabwean behind. To fulfil this vision, we have introduced a range of products and services aimed at addressing the needs of ordinary Zimbabweans. We have increased the number of merchants who accept EcoCash payments thus bringing convenience to many of our customers who prefer to transact in. We also re-launched our EcoCash Express Debit Card, which is linked to customers’ EcoCash accounts and empowers them to swipe, withdraw cash, or transact at any MasterCard terminal or ATM and pay for goods online at zero monthly fees.
These new products and services have been well-received by customers and have contributed to the transition of our business from a payments business to a digital financial services platform provider.
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 Digital Bank 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 addition of Automated Customer Feedback Collection on online banking, has resulted in improved customer experience and further contributes to the development of innovative, functional, customer-centric products. Our digital transformation journey continued, with new innovations introduced into the market during this first half of the financial year, as the business strives to ensure seamless and improved service.
The Insurtech businesses invested in enhanced technologies aimed at further improving service delivery, 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 increased the distribution footprint through new partnerships and more service locations, which will enhance the customer experience and access to services.
Our digital platforms continued to focus and drive the anchor businesses in Healthtech and On Demand Services. The first half of the year saw the launch of Internet-of-Things (IoT)-enabled smart solutions. These were Asset Track, which allows businesses and individuals to remotely track their electronic assets and Fuel Monitoring, a fleet management tool which can be utilized for other motored devices such as backup generators. These investments in improving our existing product offering, with the introduction of advanced features is aimed at delivering better user experiences.
FINANCIAL PERFORMANCE
The financial review is based on inflation adjusted financial statements which are the primary financial statements. Historical cost financial statements have been presented as supplementary information. The Directors wish to caution users of the financial statements on the usefulness of these reported financial statements, considering distortions that arise when reporting in a hyperinflationary economy.
EcoCash Holdings recorded revenue of ZW$218 billion for the period, a growth of 40% compared to ZW$155 billion in the prior year. 76% of our revenue was driven by the FinTech business followed by InsurTech at 20% and lastly Digital Platforms at 4%. 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 USD business.
The company experienced a net profit position of ZWL$130 million, notwithstanding exchange losses of ZW$167 billion associated with the debentures. The debentures were resolved by way of capital raised through a renounceable rights offer and as a result we anticipate improved profitability going forward.
RIGHTS ISSUE
Following the approval of the Rights Offer at an Extra-Ordinary General Meeting of the members of EcoCash Holdings Zimbabwe Limited on 7 August we successfully raised the US$30.3 million required to redeem our debentures.
DIVIDEND
The Directors resolved not to declare an interim dividend.
SOCIAL RESPONSIBILITY
In recognition of our efforts, Ecocash Holdings was awarded the top company in Sustainability and Promotion of Renewable Energy Award Category at the 12th edition of the Africa Green Waste and Energy Expo. Steward Bank was awarded the Inclusive Financial Service Award. The award recognizes the Bank’s efforts to increase access to financial services for underserved and marginalized communities in Zimbabwe.
Our corporate social investment initiatives channelled through Higherlife Foundation continue to centre around three pillars: education, global health, and rural transformation and sustainable livelihoods. This holistic approach underscores our commitment to contributing to the sustainable development of the communities we serve.
OUTLOOK
The business is focused on attending to all our customers’ financial services needs. This is affirmed by our continued investments in digital transformation, leveraging on smart technologies, aimed at improving financial inclusion. We remain committed to developing new innovative and inclusive products, improving customer experience and ensuring equitable access to financial and other digital services.
APPRECIATION
On behalf of the Board, I would like to thank our customers, business partners, and shareholders for their unwavering support.
I would like to express our sincere appreciation to our regulators. We are grateful for the collaborative efforts that have enabled us to contribute to the broader development of the financial services industry in the country.
I extend my heartfelt appreciation to the EcoCash Holdings staff, management and my fellow Directors. The passion, commitment to high-performance and our staff culture of innovation remain key pillars of our sustainable success in Zimbabwe.
On behalf of the Board
Sherree Shereni
Board Chairperson
2 November 2023
