Cassava Earnings Double In First Quarter

Listed technology Group- Cassava Smartech Zimbabwe Limited (Cassava)’s earnings for the first quarter to May more than  doubled owing to improved business activity in the economy post- hard lockdown that was implemented in the first two months of the year, the group has said.

The growth in revenue was spurred by the Group’s mobile money business- Ecocash which experienced steady growth over the period recording a 60 percent increase in transaction value due to an increase in wallet funding.

“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,”

“The increase in transaction values was largely driven by an increase in wallet funding. Active customers also continued to recover during the period,” said Cassava.

At its banking subsidiary- Steward Bank, revenue contribution remained stable in the quarter and is expected to increase going forward following the successful implementation of a core banking system upgrade finalized in April 2021.

“The Bank’s performance was driven by higher transaction values as well as growth in interest earning assets. The bank’s loan book is growing in line with our growth strategy on interest earning assets. The bank expects an increase in transaction volumes post the implementation of the system upgrade,” the Group said.

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

Performance of the Vaya Agritech business was suppressed during the period due to weather conditions that resulted in a delay in servicing land preparation work for winter cropping.

The Healthtech business experienced significant growth on the back of increased demand for health services as a result of the Covid-19 pandemic.

The Group has sought an extension from the Zimbabwe Stock Exchange for the publication of the full year financial results for the year ended 28 February 2021 due to Covid-19 induced circumstances.

“The financial statements will be published on or before the 31st of August 2021,” said the Group.

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