EcoCash streamlines operations under scheme of reconstruction
Financial experts say EcoCash Holdings’ recently approved scheme of reconstruction, which will see its fintech businesses consolidate under Econet Wireless Zimbabwe Limited (Econet) is a strategic step towards future growth and market dominance.
Following shareholder approval of the transfer of EcoCash Holdings Zimbabwe Limited (EHZL)’s fintech businesses to Econet, management has extended voluntary and mutual separation offers to staff in EHZL.
The voluntary and mutual separation offers to staff follows a scheme of reconstruction which was first announced by the two sister companies at the beginning of the year and obtained EHZL shareholder approval at an EGM held on April 17, 2004.
A spokesman for the company said: “Management have started the process of operationalising the Scheme of Reconstruction. And while other consultations with various stakeholders progress, they have offered interested staff the opportunity to consider and exercise the option of voluntary separation.”
Financial analyst Rufaro Hozheri sees the scheme as a timely response to the evolving telecommunications landscape. “The scheme of reconstruction,” he remarks, “comes at the right time for Econet. They need to spread their wings and keep their business lines open, especially considering the recent disruptions in internet and data networks.”
A consolidated structure under Econet, argues Hozheri, allows Econet to leverage existing infrastructure and expertise, ensuring greater agility and resilience in the face of industry challenges.
Financial Economist Malone Gwadu echoes this sentiment, highlighting the streamlining and strategic benefits of the consolidation. “This is a necessary step,” he says, “to streamline and realign the fintech business under Econet Wireless. This will give the fintech sub-units a stronger foothold in the market.”
Gwadu anticipates a multi-pronged approach following the consolidation. “We can expect staff rationalization,” he explains, “alongside system recalibration, strategic rethinking, and staff reorientation. These are all key aspects for EcoCash’s new journey.”
Looking ahead, Gwadu emphasizes the importance of a well-defined strategy. “Fintech is the future,” he concludes, “but a careful strategy that aligns with our operating environment should be their cornerstone and guiding principle going forward.”
The expert opinions paint a positive picture for both EcoCash and Econet’s future.
Another analyst, Walter Mandeya of Trigrams investment said the scheme is a strategic move to enhance efficiency, leverage existing strengths, and solidify the group’s position in the ever-evolving fintech landscape.
“With a focus on streamlining operations and developing a future-proof strategy, Econet appears well-positioned to capitalize on the vast potential of the Zimbabwean fintech market, said Mandeya.-ebusinessweekly
