Harare, (New Ziana) – Ecocash recorded a 19 percent jump in the number of transactions processed in the third quarter of 2019 compared to the same period in 2018, while the number of active customers also increased by 17 percent, the firm’s parent company said on Thursday.
In a trading update for the nine month period ending November 2019, Cassava Smartech said it had, however, seen a massive slump in the number of point of sale transactions, down 46 percent.
“Steward Bank grew its customer base by 75 percent… The bank has, however recorded a decline in transactions on its Point of Sale Terminals by an average of 46 percent from Q3 FY19 to Q3 FY20, a trend which is commensurate with declining volumes in the retail sector as disposable
incomes fail to keep up with inflation,” Cassava Smartech said.
Despite system challenges faced by Ecocash in the last quarter of 2019
that saw some business and consumers refrain from using the service, it remains the most dominant platform for individuals and businesses to transact.
Cassava Smartech said its insurance business recorded a 17 percent
growth in life policies.
The firm said the economic environment continues to be “operationally
challenging” due to subdued consumer demand as a result of the erosion of
disposable incomes, high unemployment and power shortages.
“The group has continued to innovate and invest further in its technology platforms in order to provide our customers with relevant products and services whilst improving access and convenience,” the company said.
Cassava Smartech is a spin off from the Econet Wireless group and
separately listed on the Zimbabwe Stock Exchange in December 2018.
Its well known subsidiaries include Ecocash, Steward Bank, Econet Life Private Limited and Econet Insurance Private Limited and ride hailing service, Vaya.
But it also houses on demand services in agriculture, technology,
education and health.