Zimbabwean based diversified smart tech group, Cassava Smartech Zimbabwe Limited revenues closed the year ended 2021 at ZW$14 billion compared to ZW$19 billion in the prior year.
The Group’s financial results for the year ended 28 February 2021 shows that revenue declined due to the impact of regulatory changes by policy makers and the Covid-19 pandemic.
“Although Group revenues closed the year at ZW$14 billion compared to ZW$19 billion in the prior year, due to the impact of regulatory changes and the Covid-19 pandemic, this was mitigated by a rigorous cost-cutting drive,” said the group’s chairperson Mrs Shereni.
At the end of its 2021 financial year, Cassava Smartech’s foreign exchange losses related to dollar-denominated debenture balances decreased by 45 percent, closing the year at ZWL4.6 billion ($14 million) compared to the ZWL8.4 billion ($26 million) that it recorded year before.
Additionally, EcoCash revenue contribution at 60% (2020:75%), declined as a result of our revenue diversification strategy that saw growth in the Insurtech and VAYA Technologies business.
Steward Bank’s contribution remained stable and is expected to continue on the upward trend, on the back of the system upgrade completed in April 2021.
On a positive note, Mrs Shereni noted that the year saw a growth in the Insurtech contribution from 9% in the financial year ended 29 February 2020 (FY20) to 15% in the financial year ended 28 February 2021 (FY21), largely attributed to the growth of the short-term non-motor insurance business.
“The Vaya Technologies business also uplifted its performance contribution from 2% in FY20 to 7% in FY21. The Group’s revenue diversification strategy is paying off, as evidenced by the exponential revenue growth in the Insurtech and the Vaya Technologies business units. As part of its revenue growth strategy, the Group will continue its focus on revenue diversification and innovation into the future,” she said.
The company’s assets value depreciated significantly from ZWL27.14 billion ($84 million) in 2020 to ZWD25.77 billion ($80 million) during the period under review.
The depreciation in assets came from a retained loss of ZWL3.08 billion ($9.6 million), which was accrued over time from the company’s operations.
On 04 October 2021, the Zimbabwe Stock Exchange Limited (ZSE) suspended trading of Cassava Smartech’s securities due to the company’s delay in financial results publication.
However, the capital market authorities have reviewed the decision and notified the investing public that suspension of trading in the shares of Cassava on the ZSE will be lifted with effect from 19 October 2021.
According to Mrs Shereni, the Group has continued to take advantage of this accelerated digital thrust to come up with new products and services that better respond to the evolving needs of our customers, guaranteeing a strong business that is transforming and is well placed to deliver sustainable growth into the future.
“We, therefore, continue to leverage our robust business model to innovate around on-demand technology platforms, creating customer convenience and maximising value for our shareholders,” she said.
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