EcoCash Holdings clocks Z$101,3bn revenue

ECOCASH Holdings Zimbabwe Limited (EHZL) generated ZW$101,3 billion in revenue for the financial year ended 28 February 2023, a five percent jump when compared to $96,8 billion in 2022.

In a statement accompanying the company’s financial results for the year ended February 28, board chairperson Sherree Shereni said significant growth has been noted in transaction volumes and values following the reduction in Intermediated Money Transfer Tax (IMTT) from four percent to two percent in January 2023.

“We introduced the EcoCash United States Dollar (USD) wallet during the year as we consolidated our participation in the USD economy, which according to official reports as of January 2023, accounted for 76 percent of expenditure,” said the group.

“We are encouraged by the growth in customers, volume, and value transacted. The reduction of Intermediated Money Transfer Tax (IMTT) on USD domestic money transfer transactions from four percent to two percent effective 1 January 2023 has helped in the adoption and use of USD on digital money transfer services.

“We are continuously improving access and convenience for our customers by growing our distribution footprint across the country.

“EcoCash Holdings recorded revenue of ZW$101,3 billion for the period, compared to $96,8 billion in FY22, a five percent increase from the prior year.”

Shereni said about 78 percent of the revenue was driven by the fintech business followed by insurtech at 17 percent and lastly digital platforms at percent, in line with the prior year’s performance.

“The group achieved an EBITDA margin of seven percent against 18 percent in the prior year mainly due to the pressure on costs due to the prevailing operating environment,” it said.

“The exchange losses related to the debentures amounted to $30,1 billion for the year under review.”

However, the board chair said while the business environment remains challenging, the group is committed to delivering value to all its stakeholders and as such, in line with its growth ambitions, it is actively looking at scaling various businesses, enhancing the product offering and diversification of products.

“The group continues to scout the local and regional markets for strategic opportunities, which complement our vision of a digitally connected future that leaves no Zimbabwean behind,” said Shereni.