Zimbabwean billionaire Strive Masiyiwa’s Cassava Smartech posts $2.73-million loss in 2021

Zimbabwe-based diversified smart tech group, Cassava Smartech, has posted a loss of $2.73 million (ZWL1.04 billion) at the end of its 2020 financial year, which ended on Feb. 28.

When compared to the previous year’s figures, the company’s financial performance improved slightly as its losses fell by 17.4 percent, from ZWL1.26 billion ($3.91 million) in 2020 to $2.73 million (ZWL1.04 billion) in 2021.

Cassava Smartech is a diversified smart tech group backed by Zimbabwean billionaire Strive Masiyiwa, who holds a beneficial stake in the company through Econet Group and Econet Wireless Zimbabwe.

The tech company leverages digital and financial technologies to build shared economies, drive financial inclusion and promote economic empowerment.

The company noted that the $2.73-million loss from its 2021 operations was due to disruptions and difficulties experienced in its operating environment, coupled with regulatory directives issued by the Reserve Bank of Zimbabwe that impacted its fintech business and revenue.

Figures contained in Cassava Smartech’s audited statement revealed that its revenues closed the year at ZWL14 billion ($43 million) compared to ZWL19 billion ($59 million) the prior year.

The company’s management noted that the reduction in revenue was mitigated by a rigorous cost-cutting drive, which helped it moderate losses compared to the previous year.

At the end of its 2021 financial year, Cassava Smartech’s foreign exchange losses related to dollar-denominated debenture balances decreased by 45 percent, closing the year at ZWL4.6 billion ($14 million) compared to the ZWL8.4 billion ($26 million) that it recorded year before.

The company’s assets value depreciated significantly from ZWL27.14 billion ($84 million) in 2020 to ZWD25.77 billion ($80 million) as of Feb. 28.

The depreciation in assets came from a retained loss of ZWL3.08 billion ($9.6 million), which was accrued over time from the company’s operations.

Earlier, due to Cassava Smartech’s delayed publication of its 2020 financial results, the Zimbabwe Stock Exchange suspended trading of its shares on the local bourse.

The capital market authorities are expected to review the decision following the release of the company’s financial statement today.