GABORONE – BotswanaPost has announced the introduction of its first inter-postal transfer corridor with neighbouring Zimbabwe.
The service, offered through Universal Post Union managed International Financial System (IFS), went live last Wednesday.
“The introduction of the cross-border transaction will result in BotswanaPost and ZimPost customers being able to send and receive money in real time between the two countries.
“This offers opportunity for many Zimbabweans who reside in Botswana to send remittances to their loved ones back home on a nominal fee.
“BotswanaPost has the largest footprint of 125 post offices whilst ZimPost has 220 post offices giving customers unparalled convenience,” the parastatal said in a statement.
The IFS is a standalone application that automates the processing and management of international and domestic money orders.
Presently BotswanaPost uses IFS to provide electronic domestic money order services. BotswanaPost said the initiative along with both existing and new products and services was geared towards contributing to the revenue.
The intended goal is to become a P500 million company with cost to income ration of 60% by 2016.
The product presents a significant venue generating opportunity for BotswanaPost, as Botswana is host to many Zimbabweans who send money home regularly.
Zimbabweans living abroad remitted a staggering $412 million (P3,6 billion) back home over the six months period to June this year, multiple times the $67 million received in foreign investment.
More than 3,5 million Zimbabweans are believed to be living and working in foreign countries, presenting the country with an opportunity to tap into this key source of liquidity.
The Southern Africa country has, since, adopting a basket of currencies in February 2009, been gripped in the throes of choking liquidity crisis due to low industrial and export performance, low foreign investment and limited access to lines of credit.