Cassava Resumes Trading After Filing of Financials

The financials submitted on 18 October 2021 paint a picture of a company that has fought vigorously to survive through the impact of the global pandemic in 2020 and economic headwinds amidst an unpredictable policy environment.

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HARARE – Following the release of its 2021 annual financial statements, the previously issued cease trade order against Cassava Smartech Zimbabwe Limited (trading as EcoCash Holdings Limited) has now been revoked and the Group’s shares have been approved by the regulators (SECZ) and Zimbabwe Stock Exchange to resume trading.

The Group’s shares resumed trading at the opening of the market on 19 October 2021 following its suspension on 1 October 2021.

“The Securities and Exchange Commission of Zimbabwe approved ZSE’s application for the lifting of suspension in the trading of Cassava’s shares,” reads a statement from ZSE Chief Executive Officer, Justin Bgoni.

The financials submitted on 18 October 2021 paint a picture of a company that has fought vigorously to survive through the impact of the global pandemic in 2020 and economic headwinds amidst an unpredictable policy environment.

When lockdowns began, companies and overall economic activity were directly impacted due to travel restrictions. This resulted in delays in the auditing and accounting processes which forced companies to delay the publication of financial statements.

The Group narrowed its loss by 23% in real terms to ZW$1 billion from ZW$1.2 billion loss recorded in fiscal year 2020 as exchange losses remained noticeably higher, although lower than a year earlier. Foreign exchange losses decreased by 45% to close the year ending 28 February 2021 at ZW$4.6 billion.

Operationally, Cassava is positioned to stand the gruelling economic environment as its operating segments are showing signs of growth.

The Group is strategically scaling up the contribution of other segments like the Insurtech and VAYA Technologies business. This is part of a diversification strategy to avoid overreliance on the contribution of its key segment, EcoCash. The leading mobile money operator accounted for 60% of the Group’s total revenue, down from 75% a year earlier.

Insurtech contribution grew from 9% to 15% whilst VAYA Technologies also uplifted its contribution to revenue from 2% in FY20 to 7% in FY21.

Meanwhile, Steward Bank’s contribution is expected to grow this current year going into the future following the system upgrade completed in April 2021.

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