Econet offers voluntary severance as it consolidates EcoCash back into group

Econet Wireless is offering voluntary staff separation to EcoCash employees after shareholders approved a plan to transfer EcoCash’s fintech business to to Econet.

The two companies announced earlier this year that Econet was bringing the mobile money business EcoCash back into the group, five years after spinning it off and listing it separately on the Zimbabwe Stock Exchange. Shareholders of both companies approved the scheme in April. EcoCash, in a circular ahead of shareholder approval, had said that the transaction would end duplication of structures. This would affect employees across EcoCash and Econet.

A spokesman for Econet said: “Management has 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”.

The transaction will see EcoCash’s mobile money business, the on-demand service VAYA Technologies, Econet Insurance, Econet Life, MARS Zimbabwe and Maisha Health coming under Econet Wireless. Steward Bank will remain the only subsidiary of EcoCash Holdings, which will remain listed.  As at August half-year, the mobile money business made up 43% of revenue for EcoCash. Mobile money and Steward bank made up the fintech unit, which together accounted for 76% of revenue. The insuretech business, which includes short-term insurer Moovah plus funeral cover EcoSure, accounted for 20% of revenue then.

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