Business Reporter
Ecocash Holdings Zimbabwe Limited has reported a significant loss of ZWG 148.7 million during its transition to the newly introduced ZWG currency.
The currency was launched by the Reserve Bank of Zimbabwe (RBZ) on April 5, 2024, as part of efforts to address the country’s ongoing economic challenges.
During a presentation of the group’s financial performance for the half-year ending August 31, 2024, Sherree Shereni, the Board Chairperson, explained that the migration from the previous ZWL currency to ZWG resulted in monetary losses.
To comply with International Financial Reporting Standards (specifically IAS 29 and IAS 21), the company had to restate prior year balances using the inflation index, which led to the recognition of these losses.
Despite this setback, Ecocash reported fair value gains of ZWG 1.2 billion from proceeds related to a reconstruction scheme, which were denominated in shares of Econet, a company listed on the Zimbabwe Stock Exchange.
For the reporting period, Ecocash achieved a profit before tax of ZWG 1.66 billion, a substantial increase from ZWG 144.6 million in the same period the previous year. Following this half-year performance, the Board declared a distribution from the proceeds of transferring non-banking business units to Econet Wireless Zimbabwe Limited. This distribution included cash payments of ZWG 910 billion and Econet shares.
Shereni emphasized the company’s commitment to innovation and enhancing operational efficiencies through digital technologies, aiming to meet the evolving needs of their customers while providing exceptional service through efficient banking channels.
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