Cassava first quarter revenue doubled

By Staff Reporter
HARARE – Cassava SmarTech Zimbabwe says its inflation adjusted revenues for the three months ended 31 May 2021 more than doubled when compared to the same period last year as the firm has put adequate measures to minimize the impact of Covid-19 on its operations.
Businesses worldwide have been affected by the slowdown in economic activity due to the Covid-19 induced lockdowns. The fintech giant said the market showed resilience with expectation that the government-led national vaccination programme will result in a sustained re-opening of the economy and reduce the effects of the pandemic on business.
Experts say long term welfare of businesses depends on a successful vaccination campaign.
“We remain cautiously optimistic that this trend will be sustained but are very conscious that a third wave of the pandemic could lead to additional restrictions on people movement and businesses in order to manage the spread of the virus,” said the company in a trading update.
On operations, the mobile money business experienced steady growth over the period recording a 60% increase in transaction values. This was attributed to an increase in wallet funding. Active customers also continued to recover during the period.
Steward Bank’s revenue contribution remained stable in the quarter. It is poised to increase going forward following the successful implementation of a core banking system upgrade finalized in April 2021. The Bank’s performance was driven by higher transaction values as well as growth in interest earning assets, according to the company.
It said the bank’s loan book is growing in line with our growth strategy on interest earning assets.
“The bank expects an increase in transaction volumes post the implementation of the system upgrade.”
The Insurtech business continues on a positive trajectory, writing new short term and life insurance policies as it grows the customer base for all insurance products. “New products and alternative payment channels were introduced leading to a doubling of our short-term insurance customers,” it said.
Due to weather conditions that resulted in a delay in servicing land preparation work for winter cropping, performance of the Vaya Agritech business was suppressed. However, the Healthtech business recorded significant growth on the back of increased demand for health services as a result of the Covid-19 pandemic.
The fintech giant said it will continue to focus on providing convenient digital solutions to the increasing customer demands.
Zimbabwe’s agriculture is projected to grow by 34% this year buoyed by the good rains received this season, which saw above target output for maize and tobacco. The southern African nation’s economy is expected to be boosted by the good agricultural season since agriculture is the backbone of the economy.
“The good agricultural season presents opportunities for the group’s agritech unit, short-term insurance, mobile money and the bank.” _ ECONOMIC TIMES

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