Cassava SmarTech Zimbabwe made history last December 2018 when it debuted in the market at a price of $1,50 per share, valuing the company at $3,8bn. It immediately became Zimbabwe’s third most valuable company after Delta and Econet Wireless (its now telecoms only, sister company).
Cassava Smartech’s Chairperson Tracy Mpofu,directors
Strive Masiyiwa and Douglas Mboweni have stepped down from the board effective
October 30, 2019 as part of efforts to improve transparency and governance
issues.
Masiyiwa, Econet Wireless Global group controls significant equity stake in its Zimbabwe operation, is easily Zimbabwe’s demonstrable billionaire.
Even after discounting his shareholdings in
Cassava and Econet Wireless Zimabwe at the parallel market rate of US$1:20
RTGS, Masiyiwa still maintains his position as one of Zimbabwe’s richest
investors in real terms.
In February the group’s board comprised of
nine non-executive directors and two executive directors. Tracy Mpofu was the
chairperson and non-executive director. Michael Bennett, Zienzile Dillion,
Darlington Mandivenga, Strive Masiyiwa, Elizabeth Masiyiwa, Douglas Mboweni, Hardy
Pemhiwa and Sherree Shereni were non-executive directors. Smartech chief executive Edmore Chibi and
group finance director Emilia Chisango came in as executive directors.
There were concerns that the Cassava Board,
had “too many insiders or people from the Econet group” an issue raised by
institutional shareholders. As such, the issue of directors stepping down is
really to increase “transparency and governance”.
Cassava Smartech (CSZL) is essentially a
technology platforms business that uses the mobile network to deliver services
in almost every sector of the economy including financial services, health,
agriculture, media, transport and logistics, and education.
CSZL owns EcoCash (Private) Limited,
Steward Bank Limited, Econet Life Private Limited and Econet Insurance Private
Limited.
Both Investec and African Alliance pointed
out in their reports that Cassava should be seen as one of the most successful
Fintech platforms primarily because of EcoCash and EcoSure. Its banking unit
Steward Bank is not a traditional bank, as its revenues are driven by the embedded
role it provides in supporting EcoCash. It has more customers than all the
banks put together.
CSZL owns EcoCash (Private) Limited,
Steward Bank Limited, Econet Life Private Limited and Econet Insurance Private
Limited.
But in the four months period ended February 28, 2019, the company’s revenue stood at Z$173 million. After tax profit was at Z$9.29 million while its balance sheet stands at Z$1.52 billion.
