Omega Ukama 
STEWARD Bank is set to become a standalone listed entity as its parent, EcoCash Holdings, prepares to transfer its non-banking assets back to Econet Wireless Zimbabwe (Econet).
This move marks the latest chapter in a multi-year saga of separation and specialisation within the Econet group.
Five years after spinning off EcoCash — then known as Cassava SmartTech — in 2018 to create a dedicated fintech powerhouse, Econet is now poised to further untangle its web of subsidiaries.
Negotiations between the two entities, first announced in mid-January, initially shrouded the specific assets under consideration. However, this week’s filings with the Zimbabwe Stock Exchange (ZSE) have shed light on the full scope of the proposed transfer, revealing that EcoCash would ultimately retain only Steward Bank.
Under the proposed scheme, Econet would receive the transferred non-banking assets in exchange for its own shares, which could then be distributed to EcoCash shareholders.
Both companies insist that this restructuring will not result in either entity delisting from the ZSE.
Analysts say this strategic shift reflects the success of Steward Bank’s standalone journey.
“It signifies a strategic decision to streamline operations and potentially unlock further value for both entities,” commented one local equities analyst.
“While the full implications remain to be seen, this move underscores the dynamic evolution of Zimbabwe’s financial services sector and the increasing focus on specialisation within the broader Econet ecosystem,” they said.
Another analyst, Enock Rukarwa, said the restructure would “foster focused research and developments efforts that culminate into innovation and technological advancements in the core line of business”.
Upon its 2018 spin-off and listing, EcoCash accounted for 41 percent of Econet’s revenue at the time.
To eliminate brand confusion and reflect the dominance of EcoCash within the unit, the listed entity was rebranded as EcoCash Holdings in 2021.
According to EcoCash’s latest interim results, the mobile money business remains the core driver, generating 43 percent of the company’s revenue.
Steward Bank contributed 33 percent of the top line.
The insuretech business, encompassing Moovah (short-term insurance) and EcoSure (funeral cover), while slated to move back to Econet, still exhibits strong growth potential, having witnessed 37 percent and 168 percent growth in USD-denominated business during the half-year.
Notably, EcoCash managed to grow its USD wallet services six-fold in the third quarter to November, further solidifying its position in the digital payments landscape.
Steward Bank, boasting over a million accounts, claims the title of Zimbabwe’s most expansive banking network. Its success hinges on a strategic focus on low-cost, mobile-centric services, capitalising on its parent company Econet’s extensive KYC database.
Notably, over 300 000 accounts were opened in the past three years through USSD sign-up alone.
Econet’s acquisition of Steward Bank, then TN Bank, in 2012 marked a pivotal moment. The initial 45 percent stake was increased to 100 percent ownership by 2013, solidifying Econet’s control and paving the way for Steward Bank’s digital transformation.
