HARARE – Econet Wireless Zimbabwe and EcoCash Holdings announced that they had successfully completed a comprehensive reorganisation of their financial technology businesses.
As of April 2024, all Fintech assets, including EcoCash (Private) Limited, VAYA Technologies Zimbabwe (Private) Limited, and Econet Insurance (Private) Limited, have been officially transferred from EcoCash Holdings to Econet Wireless. This significant transaction allows Econet Wireless to consolidate its Fintech services under one umbrella, enabling streamlined management and operations within the rapidly evolving financial technology landscape.
In a statement released by the companies, EcoCash Holdings will retain its designation as a “Bank Holding Company”, with Steward Bank Limited now serving as its primary asset. The company is also in the process of rebranding to eliminate references to EcoCash, reflecting its renewed focus on banking operations rather than Fintech management.
“This restructuring signifies a pivotal shift for EcoCash Holdings, allowing us to optimize our resources and focus solely on our banking strategy,” said Douglas Mboweni, Group CEO of Econet Wireless. “All our Fintech services will continue to operate seamlessly under Econet Wireless, ensuring that our customers experience no disruption in service.”
Operational continuity is assured as the Fintech entities have been functioning as subsidiaries of Econet Wireless since the transfer. The leadership remains steady with Eddie Chibi continuing as CEO of the Financial Technology businesses, ensuring consistency in management and strategic direction.
The restructuring also coincides with significant movements in shareholding within the Bank Holding Company. TN has acquired a majority stake, with a total holding of 53.3%. The acquisition process will require regulatory approval for a portion that exceeds the 25% limit set by the Banking Act, marking a new chapter in ownership dynamics within Zimbabwe’s financial sector.
“With this change, we are well-positioned to maintain a strategic shareholding and collaborate on future opportunities,” stated Tawanda Nyambirai, Group CEO of EcoCash Holdings.
The strategic hold by Econet Wireless and Econet Global (12.4% and 12.5% respectively) highlights a commitment to maintaining influence within EcoCash Holdings.
