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PEOPLE will always need to move goods from one place to the other, so starting a transport and logistics business in Zimbabwe can be lucrative. It, however, requires proper planning and understanding of the local market, regulations and financial outlay.
Here we outline the typical costs and requirements to set up a small-scale operation in Zimbabwe.
Legal and regulatory requirements
Before starting operations, you will need to register your business with the Department of Deeds, Companies and Intellectual Property; and the Registrar of Companies.
The cost of registering a private limited company typically ranges from US$100 to US$300, depending on the agency or lawyer used.
After registration, you must obtain the necessary licences and permits, including:
Transport operator’s licence — This is issued by the Ministry of Transport and Infrastructural Development. It allows you to operate commercial vehicles.
Roadworthiness certificates — Each vehicle needs to pass a roadworthiness test conducted by the Vehicle Inspectorate Department (VID). This costs around US$50 per vehicle.
Public liability insurance — This is mandatory for all commercial transport vehicles. It typically ranges from US$200 to US$500 per vehicle annually.
Fleet acquisition costs
The bulk of your start-up capital will go towards acquiring vehicles. Depending on the scale of your business, you may start with one or two vehicles. A second-hand seven-tonne truck, for instance, costs between US$10 000 and US$30 000, depending on its age and condition. If you are opting for new vehicles, the cost significantly increases, with some trucks priced between US$40 000 and US$60 000.
Operational costs
Running a logistics business involves ongoing operational expenses, namely:
Fuel — Diesel prices in Zimbabwe fluctuate, but generally range from US$1,50 to US$1,80 per litre. Your fuel costs will vary based on the size of your fleet and routes.
Driver salaries — Qualified drivers are essential. Salaries typically range from US$300 to US$600 per month, depending on the driver’s experience and the size of the vehicle.
Maintenance — Regular servicing is necessary to keep your fleet in good condition. Maintenance costs vary but expect to spend US$200 to US$500 per vehicle each month.
Marketing and technology
To attract clients, invest in marketing, including a professional website, social media presence and branding of your vehicles.
This may cost US$500 to US$2 000, depending on the scope.
Additionally, you may want to invest in tracking software to monitor your fleet in real-time. A basic GPS tracking system can cost around US$100 per vehicle.
Establishing a small transport and logistics business in Zimbabwe requires an initial investment of US$20 000 to US$50 000, depending on the scale of your operation.
Online Reporter