Zimbabwe’s publicly controlled postal services outfit, Zimpost, says mail freight and the logistics unit have become one of the leading revenue earners, contributing about 29% of total revenue.

The firm has been beefing up its logistics operation in a diversification drive that saw it enter other economic sectors to make up for depressed mail services.

Mail administration and delivery services have been affected by the emergency of fast services like social media and email, which deliver messages instantly.

Zimpost’s diversification strategy included moves into the freight mail business, where it competes with established players.

These firms, mostly privately-run global companies that have set up local operations, offer efficient services.

New entrants to the service have found it hard to break their grip on market share, but analysts say with sufficient funding and strong management, it is possible for domestic firms like Zimpost to gain significant market share.

In emailed responses to source, the firm also revealed that it was on course to achieve its year 2022 targets.

“By 30 June 2022, it was on 62% to budget,” the firm said.

“This is attributed to Zimpost’s digitisation drive. The mail freight and logistics product remain one of the leading revenue contributors of the company, contributing 29% of total revenue,” the company said.

Zimpost said it required capital injections in new products and services.

The firm has not been spared by the current economic crisis, which has affected its ability to renew its logistics fleet and maintain working capital.

The company said its online shop, zimbabwemall.post, had been performing well since its inception but it has been affected by challenges of payment gateways, which has slowed traffic on the platform.

Zimpost was also registered as a Tobacco Industry and Marketing Board transporter in the 2021-22 agricultural marketing season.

However, the company said its participation in the transportation of tobacco this year was minimal due to the decentralisation of the tobacco auction floors.

Source Newsday