Cassava Smartech Limited Zimbabwe (“CSZL”) has announced that it will list on the Zimbabwe Stock Exchange. The Company will trade under the share code CSZL and is covered by African Financials under the Zimbabwe Stock Exchange.
CSZL is a diversified “Smartech” group that has been demerged from Econet Wireless Limited Zimbabwe (EWZL) and operates separately and independently from EWZL, yet enjoying a relationship with EWZL that enables the two separate Groups of Companies to exploit their synergies. CSZL’s vision is to provide relevant digital solutions to all the people of Zimbabwe. The company uses innovative and inclusive digital solutions to support socio-economic development and improve the overall quality of life for Zimbabweans. The business builds connections between people in every aspect of their lives.
Cassava Smartech Limited Zimbabwe was incorporated in the Republic of Zimbabwe under company registration number 2487 / 2012. The company is under the leadership of Chief Executive Officer Edmore Chibi and Finance Director Emilia Chisango.
Cassava Smartech Limited Zimbabwe is venturing into this Offer because:
- The directors believe that Cassava’s current growth trajectory positions it uniquely to benefit from the broader spectrum of digital service opportunities. Importantly, all key drivers such as subscribers, mobile penetration, Internet penetration, infrastructure, group synergies, payment platform, and brand recognition and acceptance, are conducive to future growth, while the current challenges pertaining to lack of access to quality education, healthcare, and agricultural services present opportunities for the business going into the future:
- The business will pursue opportunities in the mobile business payments (Mobile Business Wallet) to tap into high value transactions. There are opportunities being pursued to integrate with the remaining three banks to grow the ecosystem and entrench mobile payments; and
- Digital banking is expected to grow on the back of robust EcoCash growth and increasing adoption of its digital platforms (Square). The economic environment in Zimbabwe has been, and continues to be, an opportunity for the Digital Bank to show the strength of its transactional banking model, pursuing the strategy of a simplified, universal and mobile-centric banking model. The directors strongly believe that the bank will continue to utilise the technological advantage of the group to increase penetration of universal banking.
- The bank will continue to explore opportunities in mortgage facilities targeting salaried employees, housing development projects, funding of health sector facilities and other renewable power. There are also opportunities to mobilize forex through tailor made products that target Non-Resident Zimbabweans such as forex denominated mortgage facilities.
- CSZL’s integrated payments platform is revolutionary, and certainly pioneering in this space, further entrenching the company’s market position as the innovation leader. By driving user engagement, user experience and customer loyalty, the platform will continue to be a way to secure a stake in the future potential of the large youth segment. Current research shows that millennials are spending over 80% of their time online on social media platforms, hence the rationale for integrating payments to social media platforms.
- Insurance penetration is still below 15% in Zimbabwe and there is potential for growth for both Life and Short-Term insurance products. The Short-Term Insurance business has only launched the auto-insurance product so far whilst other short-term insurance products will be rolled-out progressively.
- Continued expansion of EcoSure into new areas such as auto insurance, education and health cover is expected to drive growth. Specific focus on the key customer segments will deliver value through tailored offerings and unique propositions, thereby unlocking the full potential of CSZL’s products and services. The most promising customer segments being targeted are farmers, the youth, entrepreneurs and employees in the education and health sectors.
- The directors are also excited with the prospects for Cassava’s On-Demand Services driven by the rapidly increasing smartphone penetration and a youthful population that are creating new opportunities for On-Demand services and connected lifestyle services. This is part of significant changes currently sweeping across Africa, including Zimbabwe where CSZL has the further advantage of strong brand presence, large customer base and other assets to exploit the full potential of these services. The On-demand Services portfolio exists within CSZL’s e-commerce segment. The On- Demand Services comes in 3 portfolios. The first one is Cassava Mobility which offers ride hailing and ride sharing (branded VAYA under license from Cassava Smartech International- CSI). The second one is Cassava Logistics which focuses on Van delivery Services and Convoy (branded Karigo). The third one is On Demand Handyman which offers services that range from TV and decoder installations, plumbing and electrical work, etc (branded Technites). All these operate under licence from CSI. On-demand services will further support CSZL’s mobile e- Commerce platforms through the provision of logistics/ delivery services, while other important synergies are also found with EcoSure Auto Insurance, where Connected Car solutions are used to support innovative user-based insurance products. The on Demand Handyman services are also listed on the Cassava e-Commerce platform.
- Currently CSZL delivers Edutech Products to customers under the Akello brand, with the following key platform offerings: Primary & secondary school (Ruzivo), Higher Education (EcoSchool), and Skills Development (Muzinda hub). To offer Zimbabweans affordable and equitable access to quality education, CSZL is in negotiations with additional international digital platform providers active in the global education sector. The envisaged partnerships with global players are key to CSZL’s goal to localise educational content to meet local requirements.
Up to 3,679,300,707 ordinary shares will be issued pursuant to the Initial Public Offer in accordance with the terms of the Offer at the Offer price of US$ 0.001 as per terms be passed at the Extraordinary General Meeting of shareholders to be held on 29 November 2018.
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