Econet explains Cassava Smartech name change

CASSAVA Smartech Zimbabwe’s controlling shareholder, Econet Global Limited, says the fintech unit will be renamed EcoCash Holdings Zimbabwe Limited to align the name with the main operating subsidiary.

In a circular to shareholders, Cassava said the rationale for the name change included the fact that Econet Global owned other businesses outside Zimbabwe that have the word “Cassava” in their name.

“Apart from the common shareholder, such businesses are separate from the Company.

“Furthermore, the proposed change of name is intended to avoid confusion and to align the name of the Company with the Company’s main operating subsidiary, EcoCash (Private) Limited,” read part of the circular.

Cassava shall seek a Special Resolution of Members at an extra ordinary general meeting to be held on January 10, 2022.

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

“The proposed name “EcoCash Holdings Zimbabwe Limited” was approved by the Registrar of Companies on June 14, 2021 and has been reserved up to December 31, 2021.

“The proposed change of name is subject to approval being obtained from the shareholders of Cassava at the EGM of the company.

“The proposed change of name, if approved by the shareholders, will be effective from the date of issuance of the certificate of change of name by the Registrar of Companies,” Cassava said in the circular.

In the group’s financials for the half year ended August 31, 2021, Sherree Shereni, the company’s chairperson, said the company is actively pursuing investments in artificial intelligence, machine learning, and cloud-based services to proactively develop products that will meet its customers’ needs and improve the customer experience.

Ms Shereni highlighted that the performance of the business continues to be underpinned by its digital transformation journey, leading to the development of innovative products that provide unparalleled convenience to customers.

During the period under review, EcoCash continued a steady growth trajectory with transaction values and wallet funding on the upward trend compared to the same period at 25 percent and 54 percent respectively.

The group’s mobile money segment revenue grew to $6,3 billion from $5,3 billion attained during the same period ended August 31, 2020.

The group’s digital banking revenue grew to $2,8 billion compared to $1,4 billion in the same period prior year.

Ms Shereni said the Steward Bank lending strategy yielded positive results as the 127 percent growth in the loan book from February 2021 spurred the bank’s 795 percent growth in interest income, compared to the same period in FY2021.