The number of Zimbabweans receiving diaspora remittances through mobile money platform, EcoCash has increased to 260 000 (up from last year’s figure of 230 000), with US$7.5-million in transaction value processed through the e-wallet.

EcoCash, a spin-off of Econet Wireless and listed separately on the Zimbabwe Stock Exchange, experienced a drop in the number of registered user numbers from 8.4 million last year to 7.7 million this year.

The EcoCash business portfolio encompasses Fintech, insuretech, agritech, healthtech and ecommerce.According to EcoCash Holdings chairperson, Sherree Shereni the business has had to “navigate an increasingly difficult local operating environment for the greater part of the year.”

Shereni said “depreciation of the local currency, rising inflation, and the re-emergence of the parallel market” as creating a cocktail of “challenges that are impacting almost every business” in Zimbabwe. There has however been some relative stability in currency exchange rates in the past month.

Although EcoCash continued to comply with regulatory pronouncements issued throughout the financial year, some regulations have affected the company’s operations.

“The growth of our mobile money business has been severely constrained due to regulated transaction limits, regulated tariffs, and the continued suspension of some of our revenue-generating services,” explained Shereni.

Against this backdrop, EcoCash raised revenues by 26% in inflation adjusted terms. The percentage of EcoCash user numbers in rural areas also increased to 43% from 40% a year earlier.

The number of merchants transacting on the EcoCash platform every month increased fell from 47 000 in 2021 to 33 557 this year, the company added.

EcoCash agents have been impacted by the government’s directive to halt cash-in cash-out transactions, although authorities have agreed to allow these services – but only for foreign currency transactions.

Research by advisory company, Mondato shows that mobile money agents across Africa are now forced to come up with new strategies to boost income after their revenue from mobile money transactions commissions is impacted.

For EcoCash, the Fintech businesses remained the largest contributor to revenue, at 80%, while the contribution from the insurtech business was at 14%.