Zimpost rakes in $3,2m from partnerships

State-owned postal, courier and ICT services provider, Zimpost, handled international transactions worth $3,2 million in the year to December 2016 through partnerships with international money transfer companies, acting managing director, Sifundo Moyo, said.

The Zimpost boss said the firm — presently disbursing close to $4 million pension pay-outs on behalf of pension companies —was working on expanding partnerships with non-postal international money transfer companies to push transaction volumes.

“In the year 2014, the Reserve Bank of Zimbabwe (RBZ) issued Zimpost with an Adla licence allowing the company to partner with non-postal international money transfer companies.

“Our partners currently include Mukuru, Western Union, Hello Paisa, World Remit and Money Gram. In 2016 Zimpost handled international money transfers worth $3,2 million,” he said at a breakfast meeting in the capital last week.

Internationally, Zimpost is currently transacting with postal administrations in Lesotho, South Africa, Botswana, Kenya, Nigeria and Tanzania.

Moyo also said Zimpost’s electronic money order platform, Zipcash, was eyeing a five percent market share in the mobile money transfer market on the back of cash shortages which have seen mobile money transaction volumes surge.

“Zimpost’s target is five percent of the market share by end of the year. Negotiations are currently underway with United Arab Emirates (UAE), Malawi and Uganda to enable the general public to transact with their partners in these countries.

“The company is also engaging a number of International Money transfer companies and the progress to date has been pleasing,” the acting Zimpost boss said.

Zipcash accounted for less than the target of five percent of the market in the first quarter of 2017, but Moyo said the company is working towards improving its share in the money transfer market.

Zimpost — which intends to meet the target through adding the United Arab Emirates, Malawi and Uganda to its mix of international transacting partners among other measures — has also been working on expanding its agency banking chain.

Moyo pointed out that the firm’s agency banking concept had gained popularity with local banks, a development anticipated to help push the central bank’s national financial inclusion strategy for Zimbabwe.

“There is also need for the organisation to modernise and upgrade its infrastructure to enable the company to fully offer e-commerce, e-government services and migrate the bulk of its services to the electronic platforms.

“Currently, 84 percent of the post office sites are connected to the Internet and the remaining 16 percent use the call centre,” Moyo said. Daily News