EcoCash agent lists on Zimbabwe Stock Exchange
- Published on 12 July 2012
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A key partner in telecommunication company Econet Wireless’ mobile money product, Zimbabwe’s TN Bank, has listed on the country's stock market, in a move that could usher in the era of telcos entering the banking industry.
Until now, TN Bank has been part of the larger TN Holdings, which specialises in businesses such as household property, pharmaceutical products, fast foods and other retail operations.
The group’s banking unit, therefore, has been unbundled, said TN Holding company executives. And the share listed yesterday at $0, 3208.
The listing comes at a time when the country’s communications authority says Zimbabwe has 1.5 million people using Econet’s mobile money service, which is called EcoCash.
However, the listing could raise further interest among the country’s business community, as Econet plans to acquire a 45% stake of TN Bank for $20 million.
“This move anticipates the integration between telecommunication and banking that is now talked about globally,” said Nyambirai.
Earlier this week, Zimbabwe’s deputy prime minister, Arthur Mutambara, said Econet was set to become the biggest bank in the country as a result of the take up of mobile money.
“With EcoCash it means that millions of Zimbabweans without access to traditional banking service will now have the ability to send and receive money without first having to travel to the nearest bank or having a bank account,” Mutambara said.
In Zimbabwe, about 9 million SIM cards are active as of May this year, according to the country’s communications authority. Meanwhile an estimated 6,5 million subscribers are on Econet’s network, the body has said.
