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Unifreight Africa Limited, a listed transport and logistics company, is struggling to operate in Zimbabwe due to high operating costs, including exorbitant licensing fees and fuel costs. According to CEO Richard Clarke, the country’s tough economy and high licensing fees are making operations very tough.
Clarke highlighted that operating costs in Zimbabwe are significantly higher than in neighboring countries, squeezing margins. “Fuel in Zimbabwe remains the most expensive in the region at around US$1.58 per liter, compared to about US$1.01 in Zambia,” he said. Vehicle registration and licensing fees are also exorbitantly high, at roughly US$1,560 locally versus just US$132 in Zambia.
The company faces additional challenges, including diesel imports carrying heavy duties and exporters being forced to surrender 25% of foreign earnings for conversion into local currency. Clarke said the combination of these challenges, added to currency volatility, liquidity constraints, inflationary pressures, and a shortage of long-term financing, has led many businesses to tighten their belts.
Despite these challenges, Unifreight Africa delivered a strong start to 2025, with significant revenue growth in Q1. Total revenues for the quarter surged by over 30% compared to the same period last year, reflecting robust demand and the success of recent strategic initiatives. Annual turnover rose from US$20.4 million in 2023 to US$24 million in 2024 and is forecast to reach US$32 million in 2025.
The industry has raised similar concerns with the government over the years, with promises to deal with the problem being made. Unifreight Africa’s CEO is calling for relief from the high operating costs, which are making it difficult for the company to operate effectively.
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