ZIMBABWE: EcoCash Holdings Set for Rebranding After Shareholder Restructuring

EcoCash Holdings Zimbabwe Limited (EcoCash) is set to undergo a rebranding process following a major shareholder restructuring that saw local entrepreneur Tawanda Nyambirai take control of the company. This development marks a significant shift in the firm’s ownership and operational structure, as EcoCash now exclusively holds Steward Bank after its non-banking units were reclaimed by Econet Wireless Zimbabwe last year.

Steward Bank, formerly TN Bank, was acquired by Econet Wireless Zimbabwe in 2015 when the telecommunications giant increased its stake from 45% to full ownership for a reported US$27 million. It was subsequently rebranded from TN Bank to Steward Bank. Now, a decade later, Nyambirai has acquired a 53.3% stake in EcoCash Holdings, with 25% already in line with the Banking Act and Regulations. The remaining 28.3% is pending approval from the Registrar of Banks for ownership beyond the permitted 25% limit.

In a statement issued yesterday, EcoCash confirmed the restructuring:

“TN [Tawanda Nyambirai] acquired 53.3% of the bank holding company, of which 25% was already held in line with the Banking Act and Regulations. The remaining 28.3% is subject to a pending application to the Registrar of Banks before beneficial ownership is transferred.”

EcoCash also confirmed that Econet Wireless Zimbabwe Limited and Econet Global Limited will maintain a strategic shareholding in the bank holding company, with stakes of 12.4% and 12.5%, respectively.

In a social media post on X (formerly Twitter) this past Sunday, Nyambirai announced that the holding company’s name would be changed to eliminate confusion with EcoCash (Private) Limited, which is now back under Econet.

“As a result of this reorganisation, EcoCash Holdings Zimbabwe Limited retained its status as a ‘bank holding company’ with Steward Bank Limited as its only asset,” EcoCash stated.

“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 the other fintech businesses.”

The fintech businesses have been reported as part of Econet’s public financial statements since April 2024. Their performance for the half-year ended August 2024 was recorded under the mobile money and insurance segments.

Despite these changes, all existing fintech, mobile money, and banking services will continue operating without disruption. Eddie Chibi remains chief executive officer of the fintech businesses under Econet Wireless Zimbabwe Limited, while Nyambirai takes over as CEO of EcoCash Holdings. Titus Murefu has been appointed chairman of the board.

The rebranding signals a new era for EcoCash Holdings as it transitions under its new leadership, aligning its identity with its current asset structure and strategic direction.

SOURCE: AGENCIES