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Ecocash records 10% Revenue Decline

Mobile money operator , EcoCash revenue declined to 63% in the period under review which is a 10% margin from the 73% that was registered over the same period in 2019.

The total numbers of Ecocash transactions have also declined compared to the previous period of last year.

Cassava Smartech group latest financial statement for a six month period that ended in August 2020 has revealed.

“EcoCash revenue contribution, at 63% compared to 73% realised last year have declined, both as a result of macro-economic factors and regulatory changes that took place during the period under review, as well as contribution from the exponential growth in the Insurtech and ODS business units”, said Cassava.

Ecocash over the past months faced stringent measure from the Reserve Bank of Zimbabwe following allegations of fuelling the Black Market prior to the introduction of a forex auction system.

Off late Ecocash has become so scarce compared to last year when the mobile money wallet was a dominant cash platform leading all daily transactions.

RBZ tightened screws on Ecocash by limiting the number of wallets per individual, Encompassing ZimSwitch as the national payment ,putting a cap on daily Transactions to ZWL$5000.

The major blow which became the final nail to the coffin was the outright ban of EcoCash agent lines.

The ban suffocated the black market , while the forex auction has been regulating forex rates.

Meanwhile , Cassava Smartech recored a revenue decline of 34%, ZWL$5.4 billion for the six months ending 31 August 2020 compared to ZWL$8.2 billion over the same period in 2019.

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