Zimpost Targets $22m Revenue In 2017 

State owned postal courier and communication services company, Zimpost has projected a 39% revenue increase to  $22 million in 2017.

Zimpost’s annual revenue was $20 million in 2014 at the back of its increased agency services for various money transfer services.By Mthandazo Nyoni 

“The company is currently handling over 10 million mail items per annum with an annual turnover of more than $36 million,” Zimbango told The Source in an emailed response to questions.

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Zimpost corporate communications manager, Marian Banda told NewsDay that the company was projecting to generate $22 million revenue this year, but liquidity challenges were affecting their performance.

The company’s performance in 2016 was affected by a number of factors including the liquidity challenges that bedevilled the economy, resulting in their turnover being 3% below 2015 performance in revenue terms, she said.

She said some of the projects that they had hoped would be implemented in 2016, and would have contributed to their revenue, did not come to fruition. “The company faced a number of challenges, which include working capital challenges and a growing debtors book as more and more customers were taking long to pay up for services rendered,” she said.

To address the working capital challenge, the company is exploring various options which included engaging suppliers so that they could supply stock on consignment basis as this would reduce the capital outlay required by business, she said.

In 2015, its annual turnover nearly doubled to $36 million.

Banda said the cost containment strategy has helped the company reduce its costs and offer competitive products and services to its customers.

The company is also leveraging on its vast network and this is paying off, she said. Banda said a number of companies in Zimbabwe were facing problems and called for innovation if the companies were to survive and “this is exactly what we are doing at Zimpost”.

She said customer tastes and preferences were changing and as Zimpost they have been adapting to these changes.
“Unless a company adapts itself to change, the company cannot continue to exist,” she said.

Banda said their local and international money transfer service, Zipcash, has been experiencing growth from its inception in 2013. Currently, the company is transacting with countries such as Lesotho, South Africa, Botswana, Kenya, Nigeria and Tanzania, using the service.

Last month, Zimpost partnered with WorldRemit, a move which opened new foreign currency remittance routes to Zimbabwe.

Zimpost’s annual turnover nearly doubled to $36 million in 2015 on increased parcel handling and plans to increase agency service business, which contributes 30 percent of revenue, managing director Douglas Zimbango has said.

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