Cassava rebrands to EcoCash Holdings

Cassava Smartech Zimbabwe Limited is set to rebrand to EcoCash Holdings Limited in a move aimed at aligning the business with its main operating subsidiary EcoCash Private Limited.

In a circular to shareholders, this will also help remove any "confusion" on the market. The group indicated its controlling shareholder, Econet Global Limited, owns other businesses outside Zimbabwe that have the word "Cassava" in their name. Apart from the common shareholder, such businesses are separate from the Zimbabwe Stock Exchange listed Cassava. In line with this, the group will seek shareholder approval for the name change at their annual general meeting (AGM).

"In order to avoid confusion and to align the name of the company with the company's main operating subsidiary, EcoCash (Private) Limited, the company shall seek a Special Resolution of Members at the next Annual General Meeting to change its name from Cassava Smartech Zimbabwe Limited to EcoCash Holdings Zimbabwe Limited.

"The company has already secured the written consent of the Registrar of Companies to change its name to EcoCash Holdings Zimbabwe Limited, subject to the provisions of Section 26 of the Companies and Other Business Entities Act, (Chapter 24:31).

"Members are further advised that, pending the change of name approval at the next AGM, the directors have resolved that the company shall use EcoCash Holdings Zimbabwe as its trading or assumed name effective  August 7, 2021, subject to compliance with Section 29 of the Companies and Other Business Entities Act (Chapter 24:31) and any other approvals that may be required in this regard," reads part of the circular.

Meanwhile, Cassava's revenues for the first quarter to May 31, 2021 more than doubled, compared to the same period last year.

"We remain cautiously optimistic that this trend will be sustained but are very conscious that a third wave of the pandemic could lead to additional restrictions on people movement and businesses in order to manage the spread of the virus," said Cassava in a trading update for the quarter.

According to the group, the mobile money business experienced steady growth over the period recording a 60 percent increase in transaction values, which was largely driven by an increase in wallet funding. Banking services — Steward Bank's revenue contribution remained stable in the quarter and is expected to increase going forward following the implementation of a core banking system upgrade finalised in April 2021.

Higher transaction values as well as growth in interest earning assets drove the bank's performance during the quarter.

The bank's loan book is growing in line with its growth strategy on interest earning assets.

The Insurtech business has continued on a positive trajectory, writing new short term and life insurance policies as it grows the customer base for all insurance products.

Management indicated the group will continue to focus on providing convenient digital solutions to the increasing customer demands.

"The drive towards continued service excellence will remain a focus area in the coming period. The relatively stable macro-economic outlook will augment the revenue growth strategies in the future," said Cassava.