THE advent of COVID-19 has accelerated Cassava SmartTech Zimbabwe Limited’s digital transformation journey despite the recorded 34% decline in revenue to ZW$5.4 billion for the six months ended 31 August 2020 against ZWL$8.2 billion realised during the related period in 2019.
In a statement by Cassava SmartTech Director Sherree Shereni said the decline in revenue was mainly as a result of the COVID-19 induced interruptions to economic activity, as well as the pressure from various regulatory pronouncements, both of which had a significant impact on the revenue of the Group.
“Exchange losses continue to weigh-down on business performance, with an amount of ZWL2.4 billion having been recorded in the period under review in respect of the foreign obligations that the Group currently has,” Shereni said.
“Foreign liabilities at the end of the period amounted to US$ 40.1 million. EcoCash revenue contribution, at 63% declined, both as a result of macro-economic factors and regulatory changes that took place during the period under review,” Shereni said.
Whilst transaction volumes also declined during lockdown, the lifting of COVID restrictions and subsequent opening up of the economy from August 2020 saw a notable recovery of volumes across all platforms and the Group management is focused on cost containment in order to preserve margins.
The Group has taken advantage of this accelerated digital thrust to come up with new products and services that better respond to the evolving needs of our customers.
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