EcoCash swings back into profitability 

Source: EcoCash swings back into profitability –Newsday Zimbabwe

Sherree Shereni

Technology outfit EcoCash Holdings chairperson Sherree Shereni , has projected that the Zimbabwe Stock Exchange-listed firm is in for exciting times, after financial statements for the half-year to August 31, 2022 showed it had bounced back into profitability, defying “environmental headwinds.”

EcoCash lifted inflation-adjusted pre-tax profit to $911,1 million in the six months, rising from a $106,2 million loss during the comparable period.

Operations were boosted by an aggressive digital transformation strategy, which was also acknowledged by key unit Steward Bank last week.

Revenue swung up $45,4 billion, a 6,8% rise from $42,5 billion in 2021, as it tracked inroads from Steward Bank, which consolidated its forex earning capacity after approving United States dollar loans.

EcoCash, which superintends over leading tech-based brands, see fresh opportunities on the Zimbabwean market where it would be deploying “transformational innovations in the pipeline” to build the business.

Several such innovations came onto the market during the review period, including EcoCash Bill Manager, which signed up over 200 000 customers.

The platform aggregates service providers, allowing customers to “conveniently pay their bills.”

EcoCash also rolled out EcoCash chatbot, an artificial intelligence-driven customer experience solution to improve efficiencies in query resolution.

“This positive development reflects the benefits of our ongoing digital transformation journey, which has seen an improvement in operational efficiencies,” Shereni said, as she shared EcoCash’s results with investors.

“We will continue to build on this business strategy to ensure we deliver value for our shareholders. EcoCash Holdings continues to see exciting opportunities in the market for social and financial inclusion through technology. We see opportunities in the market, and we are excited about the new and transformational innovations in our pipeline.

“We have accelerated our digital transformation, disrupting ourselves to positively impact the lives of people. Despite the challenging operating environment during the period under review, we have continued to identify and pursue new opportunities, formulating winning strategies to drive business performance and positive socio-economic impact.”

Last week, Steward Bank said adjusted post-tax profit surged 314% to $5,7 billion during the same period, driven by the digital banking push.

The bank posted $1,4 billion profit after tax in the comparable period in 2021.

It also announced a 223% increase in net operating income from $8 billion to $25,8 billion in inflation-adjusted terms on the back of improved non-interest income which largely consisted of digital banking revenue and exchange gains.

Pre-tax profits were also in the positive, rising 385% to $6,3 billion, from $1,3 billion during the comparable period in 2021, according to chairperson Bernard Chidzero.