Econet, EcoCash clear air on ownership of fintech businesses
In a recent public announcement, Econet Wireless Zimbabwe Limited and EcoCash Holdings Zimbabwe Limited confirmed the completion of a Scheme of Reconstruction, resulting in the transfer of ownership of various Financial Technology Businesses.
The entities affected by this restructuring include EcoCash, VAYA Technologies Zimbabwe, Econet Insurance, Econet Life, MARS Zimbabwe, and Maisha Health Fund.
“Under this Scheme of Reconstruction, all Financial Technology Businesses have been transferred from EcoCash Holdings Zimbabwe Limited to Econet Wireless Zimbabwe Limited,” stated Dr. Douglas Mboweni, group chief executive officer of Econet Wireless Zimbabwe Limited.
“This strategic realignment allows us to consolidate and streamline our operations under a unified corporate structure.”
As a consequence of this reorganisation, EcoCash Holdings Zimbabwe Limited retains its designation as a ‘Bank Holding Company,’ with Steward Bank Limited as its sole asset.
“Given these changes, EcoCash Holdings Zimbabwe Limited will be rebranding to reflect its revised corporate scope,” added Tawanda Nyambirai, group chief executive officer of EcoCash Holdings Zimbabwe Limited.
“We are committed to adapting our identity to accurately represent our updated portfolio and strategic direction.”
Furthermore, TN has acquired a controlling 53,3 percent stake in the Bank Holding Company, pending regulatory approval to exceed the 25 percent ownership limit prescribed by banking regulations.
Econet Wireless Zimbabwe Limited and Econet Global Limited maintain significant minority shareholdings of 12,4 percent and 12,5 percent, respectively, ensuring strategic continuity within the Bank Holding Company.
“Despite these structural changes, operational continuity remains our top priority,” assured Dr Mboweni.
“The Financial Technology Businesses, now subsidiaries of Econet Wireless Zimbabwe Limited, continue to operate seamlessly.”
Eddie Chibi continues to serve as chief executive officer of these subsidiaries, overseeing their ongoing performance and integration.
This transition marks a pivotal moment in the corporate evolution of both Econet Wireless Zimbabwe Limited and EcoCash Holdings Zimbabwe Limited, underscoring their commitment to adaptability and sustained operational excellence in the financial technology sector.
“We extend our gratitude to the directors and staff of Steward Bank Limited for their dedicated service during our tenure as the controlling shareholder,” said a joint announcement by Dr Mboweni and Nyambirai.
“Together, we look forward to a future marked by continued innovation and growth across our expanded portfolio of financial services.”-ebsinessweekl
