MUKURU Financial Services Zimbabwe Limited is poised for a significant turnaround, with chairperson Bongai Zamchiya projecting the company will achieve profitability within the next 12 months.
This optimistic forecast is underpinned by a comprehensive growth strategy focused on three key pillars: the introduction of new products, the advancement of its technological infrastructure and the expansion of its service channels.
“In the next 12 months, the company’s performance is expected to turn into profitability,” he said in a statement accompanying the company’s financial results for the 15 months ended March 31, 2025.
“The plan is to roll out new products, advance technological solutions and expand on channels to improve customer experience. The company will also continue to develop its corporate structures in line with business growth.”
The Mukuru chairperson said in its first 15 months of operation, the company made a loss after tax of ZiG20,2 million.
This was mainly due to pre-opening costs incurred as the company prepared for the commencement of operations.
The company’s performance is expected to improve in line with strategy, he said.
The company’s core capital position was ZiG137,7 million as at March 31, 2025, which translated to US$5,1 million. This was above the current minimum regulatory capital requirement of ZiG equivalent to US$5 million.
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“The shareholders are committed to ensuring the company’s capital position does not fall below the required minimum regulatory capital for the next 12 months,” he said.
Mukuru chief executive officer Douglas Tait Knight said the company witnessed exponential growth in customer wallets since inception and customer balances stood at ZiG19,7 million in the period under review.
Despite the losses, Knight said Mukuru continued to maintain a strong capital position, which was above the regulatory minimum capital required.
“Income from various streams continues to grow month-on-month, driven by increased wallet activities by customers and the rollout of new products; hence, it is expected that the business will turn to profitability in its second year of operations,” he noted.
The company provides a digital wallet to its customers, which allows them to securely keep and easily access their funds, send and receive money, as well as conveniently pay for services such as electricity, airtime, DSTV, and insurance.
The goal, according to him, is to help customers become financially included and through its advanced digital solutions, deliberately target those in rural and remote areas.
“The company has plans to roll out more products to support this goal,” Knight said.
“The company is expected to continue growing the business with more new and exciting products planned to be rolled out in the coming financial year.
“Our business models continue to be challenged by the dynamic economic environment, but we remain committed to providing excellent services to our customers.”
In December 2024, the Reserve Bank of Zimbabwe granted Mukuru a licence to operate as a deposit-taking microfinance institution.
US$1:ZiG26,76 as at March 31, 2025.
