Zimpost sees surge in revenue

17 May, 2020 - 00:05 0 Views
Zimpost sees surge in revenue

The Sunday News

Dumisani Nsingo, Senior Business Reporter
STATE-OWNED postal and courier services company, Zimpost’s revenue grew 115 percent to $45 million last year compared to $20 million in the previous year.

Zimpost chief executive officer Mr Sifundo Chief Moyo said the company managed to realise a net profit of $6,8 million last year buoyed by its business turnaround strategy.

“Zimpost posted an improved revenue performance of $45 million in year 2019 compared to $20 million revenue in year 2018 revenue. Although the environment was inflationary, the company realised a net profit of $6,8 million (unaudited) which was higher than the 2018 surplus. This is an indication that the business is positively responding to the turnaround efforts being made,” he said.

Mr Moyo said the company’s business grew by 112 percent last year with its mail services contributing 65 percent.

“All in all, business growth was at 112 percent, with Agency Services mainly contributing to this growth. Mail services continue to contribute the bulk of the revenue, having contributed 65 percent in 2019, followed by e-services at 17 percent. Financial services and retail services contributed 13 percent and five percent respectively,” he said.

Mr Moyo said Zimpost was making significant strides infusing latest technologies in all its business units.

“The drive for Zimpost this year is to make meaningful strides towards its digitalisation and most of the effort and work is being focused on migrating services to the electronic and mobile platforms. The traditional post office has been infused with technology on the road to creating a digital post office through enhancing product features in line with stakeholder expectations. Zimpost is consolidating its position as Zimbabwe’s premier postal services provider,” he said.

As part of ensuring postal services are used for electronic commerce (e-commerce), the company has further developed and remodelled the once revered traditional mail order service into an e-commerce platform branded the Zimpost Online Mall, which is hosted on the Dot Post Domain and sits on the address; www.zimpostmall.post.

E-commerce is the buying and selling of goods and services, or transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-business.

“The dot post Top-Level Domain Name (TLDN) is one of the safest platforms in the world for online shopping at the moment. This platform also enables businesses, e-shops and MSMEs (Micro, Small and Medium Enterprises) to showcase their wares to the world with Zimpost guaranteeing a seamless last mile delivery service,” said Mr Moyo.

Lately there has been an increase in transactions involving delivery of items shopped online mainly due to coronavirus which has seen the Government call for a national lockdown.

“During this lockdown period, Zimpost has signed agreements with OK Mart, Gain Cash and Carry and pharmaceutical companies. This ensures that people observing the lockdown call based at home can still purchase groceries and other items while Zimpost delivers at their door step. This service also ensures that social distancing is facilitated as customers have an option of avoiding going to shops physically,” said Mr Moyo.

He also said MSMEs can also utilise Zimpost online platforms to showcase their products across the globe.

“The utilisation of the Zimpost platform to showcase local products especially from the MSMEs ensure that those producers now have access to global markets where customers can order their wares online from any part of the globe. Zimpost then facilitates the collection, conveyance and delivery of these wares to the online buyers utilising its global postal partners in 191 countries of the world,” said Mr Moyo.

The company also provides a platform for Zimbabweans in the diaspora to make online purchases from local shops with it delivering the goods to the recipient. Postal and Telecommunication Regulatory Authority of Zimbabwe (Potraz) director-general Dr Gift Machengete also noted the increase in the use of postal services for e-commerce.

“As Potraz we have noted that operators are indeed making use of e-commerce platforms to offer services particularly during the current Covid-19 induced lockdown. Zimpost continued to offer essential services to citizens during the lockdown period. The specified essential services that the Post Offices offered included delivery services for food and medication ordered on-line to customers’ homes. Online sourced parcels, food hampers and courier items deliveries are done daily from Monday to Friday at all offices. During the period up to 24 April 2020, Zimpost delivered more than 5 000 kilogrammes of food items to customers’ homes,” he said.

Dr Machengete said there was a need for companies in the postal sector to embrace e-commerce.

“With social distancing expected to be enforced for the foreseeable future, e-commerce will become the way of life for many and delivery companies in the postal sector must up their game,” he said.

He, however, said the outbreak of Covid-19 affected the provision of international mail conveyance.

“Due to the Covid-19 epidemic, the postal services sector is heavily affected particularly in terms of provision of international mail conveyance. This is due to the suspension of movement of most international passenger airlines and closure of national borders. The designated postal operator, Zimpost, has notified international partners of this predicament as required by the international conventions,” he said. – @DNsingo

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