EcoCash Zimbabwe : 2022 Annual Report

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Annual Report 2022

For we are God's handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do.

Ephesians 2:10

New International Version

(NIV) - Bible

About This Report

Report Boundaries

This annual report seeks to present a performance overview and commentary on EcoCash Holdings Zimbabwe Limited (EHZL) operations for the financial year ended 28 February 2022. The report communicates the non-financial and financial performance of our business to our stakeholders and all parties with an interest in our operations.

Shared in this report will be EcoCash Holding Zimbabwe's Environmental, Social and Governance (ESG) activities in a bid to increase the level of accountability and transparency on our operations with shareholders and a wider audience. The report content demonstrates the business' contribution to the environment and our communities. By reporting on our performance and corporate responsibility we create a platform to solicit feedback from our stakeholders, helping us to improve our internal processes and achieve business objectives.

You are kindly invited to contact us at

https://www.ecocashholdings.co.zw/

Reporting Standards and Responsibilities

EHZL applies International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and interpretations as issued by the IFRS Interpretations Committee. In addition, this report has been prepared in accordance with requirements and guidelines of S.I. 134 of 2019 Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) as well as the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) and the Companies and Other Business Entities Act (Chapter 24:31).

While the non-financial content of the report was not independently assured, external sustainability experts

were engaged to review the sustainability information. We demonstrate how some of our business activities support the aims of the United Nations Sustainable Development Goals (SDGs) and the UN Global Compact, of whom the group is a participant.

The Audit Committee recommends to the Board of Directors the Annual Financial Statements (AFS) for approval. The AFS are audited by independent external auditors, Deloitte & Touche. The Directors are responsible for the Annual Report as a whole.

Data Collection

Our report is compiled using information provided by the different units of the business from internal reports, data management systems and board reports.

Disclaimer - Forward-Looking Statements

An Annual Report includes certain 'forward-looking statements'. These forward-looking statements are about the future and therefore incorporate degrees of uncertainty. Consequently, future actual results and performance may differ from these statements. The forward-looking statements are current as of the date of publication of the Annual Report. EcoCash Holdings makes no representation that the information will be updated after release of this Annual Report.

Digitally

Empowering

People

EcoCash Holdings Zimbabwe Limited Annual Report 2022 |

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CONTENTS

428

OVERVIEW		(ESG)
	10	PERFORMANCE
	BUSINESS
	OPERATIONS

About This Report	1	Our Approach to Environmental, Social
Report Boundaries	1	and Governance	32
Reporting Standards and Responsibilities	1	Our Materiality Matrix	33
Data Collection	1	EcoCash Holdings Impact on the United
Disclaimer - Forward-Looking Statements	1	Nations Sustainable Development Goals	34
		VAYA e-Logistics	40
OVERVIEW	4
Our Vision, Mission, Values	4	Environmental	42
Company Details	5	Environmental Impact	42
Financial Performance Highlights	7	Clean City Africa	44
ESG Non-Financial Performance Highlights	8	Climate Risk	46
BUSINESS OPERATIONS	10	Social	50
Chairperson's Statement	10	Human Capital	51
Group Chief Executive Officer's		Our People | Our Business	51
Operations Review	16	Women Empowerment	54
Corporate Profile	20	Employee Engagement	56
Digitally Empowering People	21	Our Response to Covid-19	58
Our Products and Services	22
		Social Capital	60
ENVIRONMENTAL, SOCIAL AND		Corporate Membership to National
GOVERNANCE (ESG) PERFORMANCE	28	Associations	60
Message from the General Manager		Awards and Recognition Received	60
Sustainability	30	Stakeholder Engagement and Partnerships	61
Environmental, Social and Governance		Higherlife Foundation	66
(ESG) Strategy	31	Fintech | EcoCash and Steward Bank	72

114

COMPLIANCE

AND FINANCIAL

REPORTING

EcoCash	73
Steward Bank	76
Insurtech	80
VAYA Technologies	84
Agritech	88
VAYA Services	90
Governance	92
Governance Management Approach	92
Business Model and Innovation	93
Infrastructure Investment and Services	95
Leadership and Governance	96
Risk Management	96
Safety Health and Environment Management	100
Management of the Legal and Regulatory
Environment	101
Board of Directors	104
Corporate Governance Statement	108
COMPLIANCE AND FINANCIAL
REPORTING	114
Certificate by the Group Company
Secretary	116
Directors' Report	117

232

SHAREHOLDER

AND OTHER

INFORMATION

Directors' responsibility for financial
reporting	119
Independent Auditor's report	120
Consolidated statement of profit or loss and
other comprehensive income	127
Consolidated statement of financial position	129
Consolidated statement of changes in equity	131
Consolidated statement of cash flows	133
Notes to the consolidated financial statements	134
Company Directors' responsibility for
financial reporting	224
Independent Auditor's report on the company
statement of financial position	225
Company statement of financial position	228
Notes to the Company statement of
financial position	229
SHAREHOLDER AND OTHER
INFORMATION	232
Shareholders analysis	232
Corporate and advisory information	233
Financial diary	233
Notice to members	234

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| EcoCash Holdings Zimbabwe Limited Annual Report 2022

EcoCash Holdings Zimbabwe Limited Annual Report 2022 |

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		Your diversified
		digital solutions
VISION		group		MISSION
We envision a socially			To improve the overall
and financially inclusive			quality of life by offering
future that leaves no				access to social and
Zimbabwean behind.			financial services through
				technology.
		VALUES

EXPERIMENTAL	DISRUPTIVE	PERCEPTUAL
Experiment and	Actively seek	Envision the future.
explore, venture outside	to disrupt	sensitive to external
the boundaries of	and confront the	realities in light
familiar experience..	status quo.	of this networked
		global world.

4 | EcoCash Holdings Zimbabwe Limited Annual Report 2022

Overview

Company Details

Name of

Ownership

Date

Location of

Organisation

and Legal Form

Established

Headquarters

EcoCash

EcoCash

30 November

and Operations

Holdings Zimbabwe

Holdings Zimbabwe

2018

1906 Liberation

Limited (EHZL)

Limited is a listed

Legacy Way

company on the

(formerly

(formerly Cassava

Zimbabwe Stock

Borrowdale Road),

Exchange

Borrowdale, Harare

Smartech Zimbabwe

Limited)

Group Structure and Business Outline

EcoCash Holdings Zimbabwe Limited (EHZL) and its associated companies includes Mobile Money, Banking, Insurance, On-Demand Services and Digital Services.

Scale of the Reporting Organisation

For the consolidated statement of financial position with details of assets, equity and liabilities, see Compliance and Financial Reporting > Consolidated statement of financial position on page129.

Composition of the Workforce

The business had a total staff complement of 1,357 in the period under review.

EcoCash Holdings Zimbabwe Limited Annual Report 2022 |

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Company Details (continued)

EcoCash Holdings Zimbabwe Limited (EHZL) is a diversified digital solutions group with a dictate to drive socio-economicdevelopment and improve the overall quality of life for Zimbabweans through the provision and usage of digital solutions. We pride ourselves in developing approaches and formats for implementing digital applications to satisfy the needs of all our customers who range from individuals to businesses and the government. As we endeavour to be transformational, we envision a future in which our digital solutions become an integral part of everyone's everyday life thereby positively impacting lives, including the previously excluded, leaving no Zimbabwean behind.

Having started off primarily as a mobile money operation, EcoCash Holdings Zimbabwe has undergone a transformative evolution that has given birth to and presided over the growth of a full-fledged smart technology business. The business capitalises on new opportunities to counter everyday challenges through innovative, inclusive, stable, and reliable digital solutions.

As it stands today, the group boasts of a reputable well-diversified business portfolio composed of; Fintech, Insurtech, On-Demand Services, e-Commerce, Agritech, Healthtech, Edutech and VAYA Services. This unique, yet cohesive composition makes EcoCash Holdings' business model a rare jewel.

Digitally

Empowering

People

Your diversified digital solutions group

Overview

Financial Performance Highlights (inflation adjusted)

RevenueGross Profit Margin

ZW$ 29.9 billion	72 percent
ZW$ 23.8 billion in FY2021	68 percent in FY2021

Mobile Money Subscribers EBITDA

7.7 million	ZW$ 5.4 billion
8.4 million in FY2021	ZW$ 3.6 billion in FY2021

Kashagi Nano LoansRural Nano Loans

322,924	54,897
132,413 in FY2021	25,510 in FY2021

Contribution to Fiscus CAPEX

ZW$ 7.6 billion	ZW$ 2.2 billion
ZW$ 3.6 billion in FY2021	ZW$ 4.5 billion in FY2021

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| EcoCash Holdings Zimbabwe Limited Annual Report 2022

EcoCash Holdings Zimbabwe Limited Annual Report 2022 |

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