Cassava Smartech Zimbabwe Limited’s subsidiary, EcoCash’s income continue to decrease following the operating measures put in place by the Reserve Bank of Zimbabwe (RBZ) to regulate the transaction on the platform.
In a statement, Cassava has recorded a 11 percent reduction to 19 percent in transactions processed on the platform on the National Payments System from 30 percent recorded on the same period last year.
Addressing attendants at the company’s half year ended August 31, 2020, the Cassava chairperson Sherree Shereni said the company’s contributions from the business unit has also dropped compared to the same period last year..
“EcoCash’s revenue contribution, at 63% compared to 73% released 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,” she said.
The drop in Ecocash’s revenue was resulted from the measures implemented by the RBZ through its subsidiary, the Financial Intelligent Unit (FIU) in April 2020 as a way to curb the abuse of platform by illegal money changers.
The measures include the reductions in transactional limits, suspension of agent lines, directive to integrate on the Zimswitch platform, among others measures.
However, there has been stability in exchange rates and prices since the directives were implemented early this year.