EcoCash Save accounts reach 500 000

Published: 30 October 2013

ZIMBABWE'S largest mobile phone operator Econet Wireless Zimbabwe has said its subsidiary Steward Bank now has 500 000 registered account holders on its recently launched mobile banking product EcoCash Save.

Briefing journalists on the company's financial results of the half-year ended August 31 yesterday, Econet chief executive officer Douglas Mboweni said the revenue growth on voice calls was slowing down, meaning the firm should look at other revenue streams.

EcoCash Save allows an EcoCash customer to move money from their eWallet to an interest-bearing account in a matter of seconds.

"Ecosave has propelled Steward Bank and we are talking of half a million accounts in this country. Thus making the bank number one in terms of accounts in this country," Mboweni said.

"We will give you the figures at the appropriate time."

According to the company's interim results, the group posted a $70,5 million after-tax profit for the six months under review, down from $78 million in the first half prior year due to increases in finance costs.

Finance costs increased to $18 million in the six-month period from $10 million same period last year.

Econet Wireless deputy finance director Roy Chimanikire said interest charges rose by 75% compared to last year as the company secured a multi-lender facility of $317 million.

"It is not the case that we did not know about the interest charges, but when we secured the facility we were aware of the interest charges. We have paid most of our debts and now our debt to equity ratio is at 40%," he said.

Mboweni said EcoCash had surpassed the $2 billion mark and there are 14 banks on the platform, while the company has 7 000 agents countrywide.

The Econet executive said the company was working on other new initiatives including a content generation project expected to boost its data business.

"We are going to be more innovative and innovation is the lifeblood of this organisation. We did a pilot on remittances from Johannesburg to Zimbabwe. There was massive demand from that end," Mboweni said.

Meanwhile, Mboweni said no one was prejudiced on Ecolife as the telecommunications company offered free life cover for study its subscribers.

- newsday