×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Zimpost eyes $22m revenue in 2017

Business
STATE-OWNED postal, communication and financial services company, Zimpost, has projected to generate over $22 million revenue this year, down 39% compared to 2015 figures, as liquidity crisis continue biting.

STATE-OWNED postal, communication and financial services company, Zimpost, has projected to generate over $22 million revenue this year, down 39% compared to 2015 figures, as liquidity crisis continue biting.

BY MTHANDAZO NYONI

zimpost

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.

“On the growing debtor’s book, the company is entering into tripartite set-off arrangements with some customers and suppliers. We believe that we will be able to achieve our 2017 budgeted revenue. We are projecting to generate over $22 million revenue,” Banda 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.