Zimpost money transfer facilities register 5% growth

ZIMPOST money transfer facility ZipCash, has achieved a 5% growth in the third quarter of 2014 due to the introduction of international service, less than a year since the introduction of the scheme, an official has said.

MTHANDAZO NYONI
OWN CORRESPONDENT

Zimpost signed an international money transfer service agreement with Tanzania, Botswana, South Africa, Malawi, Nigeria, Kenya and United Arab Emirates (UAE postal services to move cash between the countries.

“ZipCash transactions have been growing. With the introduction of the international arm of the product, there has been a 5% growth in the third quarter,” Zimpost communications officer Anna Munembe said.

“Growth will continue as more postal administrations join. So far Botswana, South Africa, Malawi, Nigeria, Kenya and the UAE are either operational or are at advanced stages of implementation,” she added.

Munembe said a lot of progress had been made in the drive to install wide area network links at various post offices countrywide and a total number of 115 post offices are on optic fibre while 31 are on VSAT wide area network.

She said despite the challenges that the economy is facing, Zimpost intends to achieve growth while addressing its cost structures.

“The company is seriously working on new electronic platforms that will allow for entire transactions so that service is available 24/7. The company will also target various partnerships to bring new and exciting services and products into the post office,” she said.

She said Zimpost operates a network of 226 postal outlets comprising of fully fledged post offices, off counters, sub-post offices, postal agents and mobile post offices.

Zimpost boss said the business has been experiencing depressed demand and this has been affecting revenues which have dropped significantly.

“However, a new business model is being crafted that will see revenues peaking at between 2,5 to three million per month. The target is an annual turnover of 36 million per annum,” she added.

Zimpost moves over one million mail pieces per month and it processes over 100 000 mail pieces from other postal administrations per month.

The firm is targeting to franchise 54 post offices spread across the country.

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