Cassava Smartech mobile money unit sees 60% increase in transaction values

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Talkmore Gandiwa

HARARE – Cassava Smartech Zimbabwe has delayed its full year financial results by a month to the end of August 2021 saying they have been affected by covid-19 induced circumstances.

In a recently published trading update for the first quarter ended May 2021 company secretary Charmaine Daniels said the group has sought an extension from the Zimbabwe Stock Exchange for the delay in the publication of the full year financial results.

“The group has extended the publication of the full financial results for the year ended 28 February 2021 to be published on or before 31st of August 2021.” Daniels has said.

Despite the induced covid-19 lockdowns the company continued in making positive progress in the financial results of the group.

Daniels said the company experienced doubled inflation adjusted for the inflation adjusted in the first three months that ended 31 May 2021 as compared from the previous year.

The group recorded a steady increase of 60% transaction values in the mobile money business as some companies’ experienced great losses due to the pandemic.

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

 The bank also expects an increase in transaction volumes post the implementation of the system upgrade in the first quarter due to banks performance driven by higher transaction values as well as growth in interest earning assets.

“Steward Bank’s 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.” Said Daniels.

The group secretary said the bank’s loan book is growing in line with the growth strategy on interest earning assets.

The group under the Insurtech Services introduced new products and alternative payment channels leading to a doubling of short-term insurance customers.

“The business continues on a positive trajectory, writing new short term and life insurance policies as it grows the customer base for all insurance products” said Daniels.

Though the country is expecting a good winter harvest the performance of 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 company experienced significant growth in the health business as the demand for health services continued to increase as a result of the pandemic.

The group secretary said the service excellence will remain focused and the relatively stable macro-economic outlook will augment the revenue growth strategies in the future.

“The group has put in adequate measures to minimize the impact of Covid-19 on its operations.

“The good agricultural season presents opportunities for the group’s agritech unit, short-term insurance, mobile money and the bank.” Daniels has said.

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