EcoCash increased sixfold in Zimbabwe's turbulent economy
Transaction volumes for Zimbabwe's popular mobile money, EcoCash, increased six-fold in the third quarter ending November, 2023, as wallet funding increased.
EcoCash Holdings Group said in a trade update yesterday that it has consolidated its gains over the quarter.
According to EcoCash, Zimbabwe's most popular mobile money has continued to develop, navigating numerous macroeconomic upheavals and capitalising on opportunities to preserve its business performance.
The company's sales for the quarter was ZW$182.9 billion, an 83% rise in inflation-adjusted dollars from ZW$99.8 billion in FY23.
According to the company, EcoCash's US dollar wallet services are continuing to rise.
Charmaine Daniels, EcoCash group corporate secretary, stated: "Customer activity increased significantly when compared to the third quarter (Q3) of the fiscal year 2023 (FY23).
"With greater wallet funding, transaction volumes climbed six-fold.
"The strategic emphasis on extending the mobile money distribution network has proven successful, resulting in enhanced accessibility for our customers, with the footprint increasing by 29% from the previous quarter. Q3 revenue increased by 82% when compared to Q3 FY23."
Concerning the group's Insurtech business, the company stated that it is focused on improving the overall client experience.
Daniels explains: “Moovah, the short-term insurance business held engagements and partnered with service providers to ensure swift resolution of insurance claims as well as maintain high service standards for customers’ vehicles.
“EcoSure, the life insurance business, grew its presence in rural areas through strategic partnerships. Recognising the potential and untapped market in rural communities, EcoSure increased its geographic footprint through extending services to these regions.”
According to Daniels, this development brings insurance services and convenience closer to the people, ensuring better service for its consumers, including those in marginalised groups.
She says: “The synergies with the mobile money business also contributed to a rise in the US dollar denominated business, growing by 37% and 168% for the short-term and life business, respectively, when compared to Q3 FY23 performance. The Net Premium Written for the quarter increased by 116% compared to prior period.”