Econet Wireless Zimbabwe Limited (EWZL) has approved the demerger of Cassava SmarTech Zimbabwe from EWZL and is planning a separate listing of Cassava Zimbabwe on the Zimbabwe Stock Exchange (ZSE).
The demerger should see Cassava Zimbabwe listed on the ZSE by 11 December 2018.
Eddie Chibi, CEO of Cassava Zimbabwe, says Cassava has evolved from a mobile money transfer service to a diversified “smartech” business.
The vision for the company has always been that of becoming a fully-fledged smartech business, but a deliberate decision was taken to start with EcoCash, the mobile money platform, before expanding to other areas.
Emilia Chisango, Cassava Zimbabwe’s Finance Director, says over the last three years Cassava Zimbabwe has seen its revenue grow by double-digit figures, more than doubling in the financial year ended on 28 February 2018, to US$258 million.
Over the same period, its profit also increased with almost 300% to US$71 million.
The demerger from Econet will not only unlock value for shareholders but operating independently will allow the Cassava Zimbabwe management team greater focus on the implementation of its strategy.
“The demerger still affords EWZL and Cassava Zimbabwe scope to continue collaborating and expand independently of each other, whilst recognising and exploiting the inherent synergies between them,” adds Chisango.
After the demerger Cassava will own 100% of EcoCash and Steward Bank, 85% of Econet Life, and 90% of Econet Insurance.