EcoCash Employees Face Tough Choices As Company Offers Voluntary Retrenchment
Following shareholder approval of the transfer of EcoCash Holdings Zimbabwe Limited’s (EHZL) fintech businesses to Econet Wireless Zimbabwe Limited (EWZL), management has extended voluntary and mutual separation offers to staff in EcoCash Holdings Zimbabwe Limited.
The move follows a Scheme of Reconstruction which was first announced by EWZL and EHZL at the beginning of the year and obtained EcoCash Holdings shareholder approval at an EGM held on April 17, 2024.
Among the reasons cited for the Scheme of Reconstruction was the need for the consolidated business to streamline several duplicated roles and activities, to enhance synergies and preserve shareholder value.
This would necessitate staff rationalisation across the EHZL and EWZL businesses. A spokesman for the company said:
Management have started the process of operationalising the Scheme of Reconstruction. And while other consultations with various stakeholders progress, they have offered interested staff the opportunity to consider and exercise the option of voluntary separation.
The EHZL fintech businesses that have been transferred and consolidated into EWZL include EcoCash (Private) Limited, VAYA Technologies Zimbabwe (Private) Limited, Econet Insurance (Private) Limited, Econet Life (Private) Limited, MARS Zimbabwe (Private) Limited and Maisha Health.
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