BULAWAYO, June 15 (The Source) – Zimpost’s agency services are now contributing more than 70 percent of monthly revenue and is seeking more companies locally and regionally to partner and grow the business, an official said on Monday.
In February, Zimpost managing director Douglas Zimbango said that the parastatal was handling over $4 million in third party financial transactions per month since it launched its money transfer service in 2013. As of May last year, it was averaging $20 million in annual revenue.
It launched its local and international money transfer service, Zipcash, in October 2013.
Zimpost moves about 11,6 million domestic letters, 2,3 million international mail and about 30,000 parcels per year.
On Monday, Zimpost corporate communications manager Marian Banda told The Source that agency service was now contributing the bulk of the group’s revenue.
“Agency services contribute about 70 percent of the total revenue per month,” said Banda. (With that in mind), Zimpost will continue to partner with more companies and automate systems to grow this side of the business through utilisation of the extensive network to reach all corners of Zimbabwe.”
She said Zimpost has been opening Zipcash to more partners and it is currently partnering with financial companies in South Africa, Tanzania, Botswana and Kenya.
“We will also be signing agreements with UAE and Malawi soon. The challenge, however, is lack of mobility and multi-channel access which has seen us lose business to mobile money transfers. The company has now engaged developers to incorporate mobile functionality on the system,” she said.
Banda said 115 post offices countrywide were now linked through on optic fibre while 31 are on VSAT wide area network.
“These offices are online, enabling customers to transact in real time. This year you will see a further revamp of our front offices in response to customer demands and developments in the sector,” she said.
Zimpost like any other company in the post dollarisation era, is not adequately capitalised to meet current challenges and has had to change its business model from moving parcels and letters to agency services. Developing its data network will enhance connectivity with its principal clients, Banda said.
“We intend to achieve growth and address our cost structures. We have plans that will change the face of the Post Office in line with our philosophy of going beyond the envelope. The company is seriously working on new electronic platforms that will allow for entire transactions to be carried online so that service is available 24/7,” she added.
However, Banda said funding for universal access will continue to be a challenge because of the conflict arising from the need to operate viably while at the same time being present in areas that do not make business sense.