Cassava Records $104 million Profit

Fintech group, Cassava Smartech Zimbabwe Limited has made a profit for the four months to February 28, 2019 came in at $9,3 million in the group’s inaugural financials since its listing on the Zimbabwe Stock Exchange last year.

Year-on-year, profit jumped 48 percent to $104 million while revenue doubled to $501 million in the year to February 28, 2019, which incorporate the eight months pre-demerger financial performance consolidated in the  financial  statements  of  Econet  Wireless  Zimbabwe  Limited  and  the  4  months  post-demerger audited  financial  performance under  the  new  Cassava  Smartech  Zimbabwe  Limited  Group.

Profit from operations for the year jumped 57 percent to $170 million while profit before tax rose 29 percent to $137 million from $106 million. According to Cassava, comparatives for  the financial  year  ended   February 28, 2018  are  based  on proforma  historical  financial  statements   from  the audited financial statements of Econet.

Cassava was listed on the ZSE on December 18, 2018, becoming the first standalone listed fintech company in Africa as well as the most valuable listing by introduction on the local bourse.

This came following the approval by Econet shareholders last November for the Smartech business to be demerged, giving birth to Cassava.

In the four months to February 2019, revenue stood at $173 million. Profit from operations was $41 million while a profit before tax of $11,5 million was achieved.

Total assets for the group stood at $1,5 billion at close of the period.

Cassava group is the holdings company for mobile money platform, EcoCash, Steward Bank and Ecosure among other businesses. For the period under review, 9,8 million individuals were using EcoCash mobile money platform to transact, representing almost 90 percent of Zimbabwe’s adult population, while Steward Bank holds 1,3 million  bank  accounts,  representing  37 percent of country’s banked population.

EcoCash has processed more than $78,4 billion in value since the introduction.

Group chairperson, Tracy Mpofu said an additional 2,6 million individuals subscribe to the group’s micro-insurance packages.

“The group is focused on driving the financial inclusion agenda and increasing access to financial services especially among previously excluded segments. Our mandate is to develop digital solutions that drive socio-economic development and improve the overall quality of life for all Zimbabweans,” she said.

Management wants to leverage on digital solutions to everyday challenges in Zimbabwe as part of its efforts to bring convenience as well as enhance financial inclusion.

Mr Mpofu said: “CSZL is a smartech-driven business, committed to continued investment in technology platforms that enhance transactional capacity, ensures convenient usage and improves customer experience.

“As such, it relies heavily on  its  digital  platforms  which  provide  much  needed  services  to  millions  of  Zimbabweans.

“We will continue to  deploy  solutions  that  are  available  through  multiple  channels.”

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