Cassava records $104 million profit

By Staff reporter | 03 Jul 2019 at 18:05hrs
Cassava
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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