Conrad Mwanawashe Business Reporter
ZIMBABWE’S premier logistics company, CourierConnect has partnered the Zimbabwe Amalgamated Housing Association (ZAHA) to provide a platform to facilitate business for cross border traders while promoting exports.
Dubbed Zimba365, the facility will be signed on Wednesday and will see the logistics firm offering a combo of products to informal traders that includes cheapest possible air travel and cargo import express. The deal will also facilitate movement of exports.
Traders will access cheaper tickets through CourierConnect’s subsidiary, the Civil Service Travel Bureau.
In separate interviews with The Herald Business, CourierConnect managing director Mr Isaac Muchokomori and ZAHA director, who is also Chivi Rural District Council chairman, Dr Killer Zivhu said Zimba365 will revolutionise business for traders while enhancing revenues for the logistics company.
“The deal will see CourierConnect offering a combo product to informal traders, to access cheapest possible air travel and cargo import express. They will be able to access cheap air tickets through the CSTB.
“Their baggage/cargo will be shipped into the country, cleared and delivered to their doorsteps, anywhere in Zimbabwe, through the On Time Everytime, CourierConnect import express brand,” said Mr Muchokomori.
“Informal traders will be able to make pre-payments in instalments towards their air tickets, shipping and duty costs into a bank account that will be jointly managed by CourierConnect and ZAHA.
“Through these pre-payments, informal traders will be able to access cheapest airfares through early bookings and be able to do group bookings in advance. The merchandise will then be delivered to their doorstep as per their instruction by CourierConnect,” he said.
Zimba365 will assist the informal traders to lower their stocking costs while at the same time assisting them to fully comply with import laws of the country. This will even lower the risk of having informal traders’ merchandise being impounded by Zimra which has a negative effect on their capital base and ability to continue trading.
“In other words, this will bring sustainable ways of doing business to informal traders helping them to grow into the formal sector in the process. If implemented properly, this will see the volumes of tickets purchased through CSTB increasing significantly and shipments that passes through CourierConnect will also shoot up.
“The synergies that exist within CourierConnect especially between the courier express and travel agency business coupled by the economies of scale brought about by the vast informal cross boarder traders will lower down the cost of doing business.
“This will afford CourierConnect to implement the small profit quick returns strategy to this sector of the economy, maximising on volumes. This will create value in the process for the growth of the company,” said Mr Muchokomori.
While CourierConnect expects the deal to help revenue growth, Dr Zivhu believes Zimba365 will be a game changer for informal businesspersons. It will help integrate them into formal business while moving them into corporate status as they will begin to import or export in bulk while at the same time helping in curbing smuggling.
“There is a lot of smuggling because our border posts are porous. When our people leave the country, they leave as visitors and not traders meaning that as visitors they can only receive a rebate of $200. This means that they are paying high duties. This is not a punishment but that is the law,” said Dr Zivhu.
“So what we have done with CourierConnect is that the people would buy their goods in South Africa, Dubai, Tanzania or any other part of the world.
“They do not necessarily travel back with their goods but CourierConnect will do the logistics to move the goods. What this means is that traders will save time because they do not have to wait at the border to clear the goods with the Zimbabwe Revenue Authority.
“Currently some people are spending as much as 48 hours on the road because of the delays at the borders and the Zimra spot checks,” said Dr Zivhu.
“As Zimba365 we will pay our duties through CourierConnect so that we contribute to economic development. The Zimba365 will also promote exports. Where our people see opportunities to supply we will facilitate,” he said.
Zimba365 will also finance bulk buying of goods outside the country.
This will be done under the Fill My Shop Concept.
For the facility to work, Dr Zivhu said, banks should offer the traders VISA/Mastercard so that they can transact from anywhere in the world without carrying cash.
The facility will also apply to local purchases as it supports buying locally produced goods.