Since EcoCash Holdings announced that businessman Tawanda Nyambirai had taken over the company and made some changes, there has been some confusion about who owns what, and what it all means.
First, how did it start?
In 2018, Econet Wireless split its fintech businesses, such as EcoCash, into a separate company. So, we now had Econet Wireless and EcoCash Holdings, two different companies listed separately. This changed in April 2024, when Econet took the businesses of EcoCash Holdings back under Econet. These are EcoCash mobile money, VAYA Technologies, Econet Insurance, Econet Life, MARS, and Maisha Health Fund. This left Steward Bank as the only business under EcoCash Holdings.
What has now happened?
Nyambirai, through his company TN, now owns a 53.3% stake in Steward Bank’s holding company. This was after his company, TN Asset Management, underwrote a rights issue for the company late last year.
Regulations limit a single shareholder to 25% ownership of a bank. Since Nyambirai’s 53.3% stake exceeds this limit, he has applied “to the Registrar of Banks to hold in excess of the permitted 25% limit, before beneficial ownership is transferred,” a joint statement by Econet CEO Douglas Mboweni and Nyambirai says.
Change of name
Since EcoCash Holdings no longer owns EcoCash mobile money, the company is rebranding to avoid confusion.
Says the statement: “EcoCash Holdings Zimbabwe Limited is in the process of changing its name to remove the reference to EcoCash, as the company no longer owns EcoCash and other fintech businesses”.
Will Econet ‘cash out’ entirely?
Econet Wireless holds 12.4% of Steward Bank, while its parent company Econet Global owns 12.5%. Both companies “intend to maintain a strategic shareholding in the Bank Holding Company.”
Impact on services?
According to the companies, “all existing fintech, mobile money, and banking services continue uninterrupted”. Eddie Chibi, who was CEO of EcoCash Holdings before last year’s changes, continues his role as the head of the fintech businesses that are now under Econet.
Nyambirai originally founded the institution in 2001. Econet took over in 2013, leveraging its growing mobile money business to drive the bank’s expansion.
ALSO READ | Restructuring: EcoCash now back under Econet
