Almot Maqolo, Staff Writer 
ECOCASH Holdings Zimbabwe (EcoCash) more than doubled its spending on local suppliers of goods and services to ZWL665 billion -mainly small to medium businesses, as part of its efforts to grow the sector.
EcoCash spent ZWL1,5 trillion on suppliers during the year that ended February 29, 2024 (FY 2024), representing a 181 percent growth from ZWL534,1 billion in FY 2023.
This also reflected a notable rise in operational expenditures.
This amount was distributed across more than 300 suppliers- mainly local suppliers.
About ZWL665 billion, representing 45 percent of the total spend, was allocated to local suppliers.
A significant portion of this spend ZWL153 billion was directed towards small and medium enterprises (SMEs).
“Zimbabwe has a high informal sector economy that is dominated by SMEs.
The SME sector is recognised as a significant contributor to economic growth and development and significant employment,” EcoCash said in its annual report.
“Of the 290 plus local suppliers that EcoCash contracted with during the reporting period 222 are small and medium enterprises.”
At the same time, EcoCash’s spending on foreign suppliers remains crucial for accessing advanced technologies, international expertise, and critical infrastructure needed for its digital banking and fintech operations.
EcoCash leverages partnerships with global technology providers to ensure its mobile payment platforms remain competitive and innovative.
These foreign suppliers, particularly those in the tech and telecommunications industries, provide the backbone for EcoCash’s mobile money and digital service platforms.
“Our objective is to diversify our supply chain by increasing our spend with the various diverse supplier groups.
Our current Supplier Diversity contribution in this reporting period is 11 percent, and with a goal of reaching 15 percent by the next reporting period,” Ecocash added.
As for the financials, Ecocash revenue increased by 64 percent, rising from ZWL534,1 billion in the prior year to ZWL874,7 billion.
The company posted a profit of ZWL287,3 billion, a significant turnaround from the ZWL89 billion loss in the previous period.
This growth was primarily driven by increased activity in the mobile money business, especially in USD transactions, which surged by 2,431 percent.
newsdek@fingaz.co.zw
