Cassava Smartech Zimbabwe rebrands in bid to strengthen position
Cassava Smartech Zimbabwe will rebrand as EcoCash Holdings Zimbabwe Limited in a bid to align the business with the main operating subsidiary EcoCash Private Limited, the company told its shareholders in a statement last week.
The statement reads: “Members are advised that the Company’s controlling shareholder, Econet Global Limited, owns other businesses outside Zimbabwe that have the word, “Cassava” in their name. Apart from the common shareholder, such businesses are separate from the company.”
The company added that there was confusion in the market and the rebranding would address the issue.
An economist at Nelson Mandela Metropolitan University, Gift Mugano believes the move is right for the Zimbabwe company and the market will respond positively: “The idea is meant to align the company’s business and many of its consumers know EcoCash as a common brand better than Cassava.”
Cassava Smartech, which was demerged from Ecocash operates four subsidiaries with EcoCash, the mobile money services, the main operating subsidiary. Under Cassava, there is also a banking service, where Steward Bank is the dominant one.
According to the company’s trading update for Q1 2021 ending 31May 2021,the mobile money business witnessed a steady growth over the period recording a jump of 60% in transaction values, driven by an increase in wallet funding.