Zimbabwe's Cassava hits $3.7B valuation on first day of listing on ZSE

Cassava SmartTech, a former division of Econet, has listed on Zimbabwe Stock Exchange. This brings the number of companies listed on the exchange to 63. The company was also the first to list on the exchange since 2016.

The company, trading under the share code CSZL, closed the yesterday with a share price of $1.49. At $3,775 billion, it is now the most valuable counter on the exchange. Ahead of both its former parent, Econet, and beverage maker, Delta after yesterday’s trade.

CSZL, incorporated in Zimbabwe in 2012, is a diversified “SmarTech” group. The leadership comprises of CEO Edmore Chibi and Finance Director, Emilia Chisango.

Econet Global, the international business of the Econet group is now the majority shareholder in Cassava. It has a 35,01% while EWZL holds a 20% stake.

Other Cassava shareholders are Stanbic Nominees (Private) Limited (Nnr) which hold a 12,62% stake, Stanbic Nominees (Private) Limited (5,63%), Old Mutual Life Assurance Company of Zimbabwe Limited (5,22%), with the other shareholders holding the remaining 21,52%.

With the listing, it is now demerged from Econet Wireless Limited Zimbabwe (EWZL). The separate listing will allow Cassava to focus on the growing digital service opportunities in Zimbabwe.

Yet, although independent from EWZL, it will continue enjoying a relationship with EWZL. This will enable the two separate Groups of Companies to exploit their synergies.

Also read: Strive Masiyiwa’s Econet gets into ride-hailing with Vaya Lift

Cassava's subsidiaries include Steward Bank as well as EcoCash. It also has other units focusing on health, education, and auto insurance. Combined, EcoCash, Steward Bank, Econet Life and EcoSure generated $257 million in the financial year to February.

The units taken over by Cassava held assets worth $657 million in the full year to February 28. While net income amounted to $70 million from a comparative of $18 million in the previous year.

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