Econet Wireless Zimbabwe, a mobile services provider that is a subsidiary of South Africa-based Econet Wireless Group, recently announced that it will launch a microloan program to target entrepreneurs in the informal sector in Zimbabwe. The loans will be offered to phone subscribers over 18 years of age and that are registered with Ecocash, the company’s mobile payments service. These loans can range up to USD 500 with a maximum term of 30 days and a 5-percent monthly interest rate. The loans will be underwritten by Steward Bank, a commercial bank in Zimbabwe that is owned by Econet.
Econet Wireless Group is a telecommunications group that is registered in Mauritius and has operations in Africa, Europe, South America and East Asia. Econet Zimbabwe reported 8 million customers as of 2013. Steward Bank is a private commercial bank that was acquired by Econet Zimbabwe in 2013. It reported total assets of USD 128 million as of August 2013. No further financial information on the bank is available.
By Juan Blanco, Research Associate
About Econet Wireless Zimbabwe
Econet Wireless Zimbabwe is a telecommunications provider that started operations in July 1998. As of 2013, it has approximately 8 million subscribers.
Econet Zimbabwe is a subsidiary of Econet Wireless Group.
About Econet Wireless Group
Based in South Africa, Econet Wireless is a telecommunications group with operations in Africa, Europe, South America and East Asia. It offers mobile and fixed telephone services, internet service and satellite services. The group’s subsidiaries include Econet Wireless International, Econet Wireless Africa, Econet Wireless Global and Liquid Telecom. Ecocash is Econet’s money transfer service that allows Econet customers to transfer money between mobile phones. Econet operates in Mauritius, South Africa, the United Kingdom, Ivory Coast and China.
About Steward Bank
Steward Bank is a private commercial bank based in Zimbabwe. It was first established in 2001 as TN Asset Management. In 2009, it launched commercial banking operations after operating as a finance company for 10 years. In 2013, Econet Wireless Zimbabwe acquired 100 percent of the shares of TN Bank and rebranded it Steward Bank.
Sources and Additional Resources
[1] New Zimbabwe, “Econet moves to drive financial inclusion” by The Source, April 2014, http://www.newzimbabwe.com/business-15164-Econet+moves+to+drive+financial+inclusion/business.aspx
MicroCapital Story, March 13, 2013, “Deputy Prime Minister Mutambara of Zimbabwe Urges Banks to Stop Seeking Legal Action Against Econet’s Ecocash Mobile Banking Service and Start Competing,” https://www.microcapital.org/microcapital-brief-deputy-prime-minister-mutambara-of-zimbabwe-urges-banks-to-stop-seeking-legal-action-against-econets-ecocash-mobile-banking-service-and-start-competing/
MicroCapital Story, December 20, 2012, “CBZ Bank, Econet Wireless Partner to Offer Mobile Banking in Zimbabwe,” https://www.microcapital.org/microcapital-brief-cbz-bank-econet-wireless-partner-to-offer-mobile-banking-in-zimbabwe/
MicroCapital Story, October 24, 2011, “Econet Wireless Zimbabwe, Telecel Zimbabwe Each Launch Mobile Banking Services,” https://www.microcapital.org/microcapital-brief-econet-wireless-zimbabwe-telecel-zimbabwe-each-launch-mobile-banking-services/
MicroCapital Universe Profile: Econet Wireless Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Econet+Wireless+Group
MicroCapital Universe Profile: Steward Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Steward+Bank
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