Zimpost expects flat performance

Published: 24 June 2014

Zimpost expects a flat performance in the topline but is forecasting better performance in 2015 as new products begin to perform, a company official said.

Zimpost introduced an array of products with the idea of migrating from traditional mail business and these include ZipCash, community information centres among others.

Zimpost managing director Dr Douglas Zimbango said turnover for this year is expected to remain flat despite the introduction of new products.

"We expect turnover to remain as it is and currently we are sitting on $20 million in terms of the money that the company earns from transactions.

About $300 million is currently the money that goes through Zimpost through different transactions," said Mr Zimbango.

Zimpost's mail business continues to decline and this year the company witnessed an 86 percent decline in mail deliveries.

In 2000, the company was handling around 100 million mail pieces annually but this has now gone down to the current 14 million due to current developments on prepaid meters, internet bills and self deliveries.

Dr Zimbango said he is expecting the decline of mail volumes to get worse.

"Post offices the world over are diversifying and Zimpost is no exception. Financial and agency services are now the mainstay of the business and this is leveraged by technology.

"Zimpost hopes to provide universal, technology-driven and affordable postal courier communications and agency services," said Dr Zimbango

He said ZipCash turnover since launch stands at $500 000 from $3 million worth of transactions that were pushed through the facility.

ZipCash is a money transfer service that allows customers to send or receive money locally and internationally through postal network worldwide.

Dr Zimbango said the company will continue leasing out its properties as a way of increasing revenue.

As part of its expansion initiatives, Zimpost has increased its post offices across the country to 225 from 220.

The company hopes to add 10 more by the end of the year as the company intensifies its efforts to make sure the products introduced on the market reap success.
- The Herald

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