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Business Reporter
CHINA’S largest courier company YTO Express, which moves more than 13 million parcels per day and has an annual turnover the size of Zimbabwe’s national budget, has announced intentions to invest in Zimbabwe’s logistics industry and use the country as a base to launch African operations.

Its intentions are contained in a Memorandum of Understanding signed between the Shanghai-headquartered company and Zimpost. The MOU was signed in Hangzhou, Zhejiang Province. The city is commonly referred to as China’s e-commerce capital as it is the home to global e-commerce juggernaut Alibaba.

“Zimpost will be YTO’s partner of parcel service from China to Zimbabwe and the rest of Southern Africa,” says the MOU further stating that Zimpost would be responsible for last mile delivery within Zimbabwe and the entire region.

The MOU also says, “YTO and Zimpost will discuss the potential of capital investment co-operation. The two companies agree to co-operate and invest in cross border e-commerce between China and Zimbabwe and Southern Africa.”

It was signed by Mr Xinwei Yang, YTO executive Vice President and Zimpost chairman Mr Clemence Mabaso. The signing was witnessed by the Minister of Information Communication Technology, Postal and Courier Services Supa Mandiwanzira and YTO Express Chairman and President, Mr Weijiao Yu. The signing was immediately announced on Chinese government website – www.GOV.cn.

The agreement comes on the eve of a historic state visit to Zimbabwe by the Chinese President Mr Xi Jinping. The Chinese leader, who arrives today, is expected to seal mega economic deals with the Government. His visit is also seen as a major catalyst and driver for Chinese private sector investment in Zimbabwe.

The MOU signed between YTO and Zimpost could open possibilities of the Chinese company buying a stake in Zimpost’s courier subsidiary Courier Connect.

“As Zimpost, we are very excited at the opportunity of working with a top tier Chinese company in the parcels express industry. The potential of us and YTO making a huge business impact domestically and the region is unparalleled. It’s a major development for us and we are going to seize the moment. I really would like to thank Minister Mandiwanzira who led us to YTO Express,” said Zimpost chairman Mr Mabaso in a statement.

YTO Express had a turnover of $4 billion last year. Its turnover this year is projected at $5,3 billion. While largely private, 20 percent of its shares are held by Alibaba.

It also operates a cargo airline and during the recent Chinese President’s visit to the United States, YTO Express chairman and president Mr Yu signed a deal for 15 cargo planes with Boeing due for delivery in three to four years.

Contacted for comment, Minister Mandiwanzira confirmed the MOU signing but said he was not ready to discuss it with the media.

“Yes, there are good things in the offing at Zimpost. I have just come back from China and I need to brief my boss first then we can talk,” Minister Mandiwanzira said.