Harare – Clothing retail chain, Truworths said their sales volumes were negatively affected in the last two weeks during which Ecocash, a mobile money platform handling the largest chunk of Zimbabwe’s electronic transactions underwent upgrades.
This was said by the company’s chief executive officer Themba Ndebele whilst briefing stakeholders at the annual general meeting held in the capital on Thursday.
“The last ten days have been affected by cash sales difficulties on the maintenance of Ecocash and that has negatively affected the operations. The biggest problem that the customers have been facing is that, after transacting the merchants do not receive the money,” Mr Ndebele said.
Ecocash is operated by Cassava Smartech, Econet’s sister company and since its inception has grown to become the de facto national payments platform as it now handles over 85% of all electronic transactions by volume, according to the Reserve Bank of Zimbabwe (RBZ).
According to the Postal and Telecommunications Regulatory ( POTRAZ), the Ecocash mobile money platform accounts for roughly 99 percent of the total mobile money transfer services that take place in Zimbabwe.
Ecocash has over 10 million registered customers and about 180 000 merchants and agents.
The reduction in Truworths cash sales aggravates the already experienced sales volumes decline of 68% in the first quarter ended 6 October 2019.
The company attributed the decline to the macroeconomic environment where most retailers and other business operations have been reporting subdued volumes performance as consumer power significantly declined.
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