Vusumuzi Dube
Rutendo Nyeve, Sunday News Reporter
LISTED transport player, Unifreight Africa Limited has commended the introduction of the Zimbabwe Gold (ZiG) saying it has brought about a profound impact on the formal market in Zimbabwe through the stabilisation of the economy, improved liquidity in the market and increased confidence.
With a 78-year footprint in the country, Unifreight has three operational brands under its corporate umbrella, namely Skynet Worldwide Express, Bulwark Transport and Swift Transport.
Bulwark offers dedicated and tailored fleet solutions, Skynet offers international and domestic courier services as well as air freight, and Swift Transport provides consolidated road freight and distribution solutions across Zimbabwe.
In a statement on the company’s 2023 annual report released on Tuesday, the Group Chief Executive Officer, Mr Richard Clarke the ZWG, anchored by a composite basket of foreign currencies and precious metals, was introduced to stabilize the local economy and curb inflation which was necessitated by the persistent economic challenges that plagued Zimbabwe, including hyperinflation and currency instability.
“The introduction of the new currency had some positive impacts with the major one being the stabilisation of the economy: The ZWG has contributed to the stabilisation of prices and reduced the volatility that businesses have been grappling with.
“This stability is crucial for planning and executing long-term business strategies. The new currency has also improved liquidity in the market. With better access to a stable currency, businesses have been able to manage their cash flows more effectively, ensuring smoother operations and transactions,” said Mr Clarke.
He said the introduction of a currency backed by tangible assets has increased confidence among investors and the business community which is vital for attracting both local and foreign investments, which are essential for economic growth.
He however alluded that the transition to the new currency has not been without its challenges as businesses have had to adjust their accounting systems, pricing strategies, and payment mechanisms to align with the new currency, leading to temporary disruptions.
“While the formal market has shown resilience, the general public’s adaptation to the new currency has been gradual. Educating the populace and ensuring widespread acceptance remain critical for the currency’s long-term success.
“On the other hand, the new currency’s exchange rate dynamics have impacted the cost of imports and the competitiveness of exports. Businesses involved in international trade have had to navigate these changes carefully to maintain profitability,” said Mr Clarke.
He said at Unifreight Africa, they have proactively adapted to the changes by revising their financial strategies and ensuring compliance with the new currency regulations while remaining optimistic that the ZWG will foster a more stable and predictable economic environment, enabling them to continue delivering value to their shareholders and stakeholders.
“While the introduction of the ZWG has presented certain challenges, it has also opened up opportunities for economic stabilisation and growth. We are committed to navigating this new economic landscape with agility and foresight, ensuring that Unifreight Africa remains at the forefront of Zimbabwe’s transport industry.
“Unifreight Africa is well-positioned for sustained growth and profitability. Our strategic investments in fleet expansion, focus on high-revenue sectors like tobacco, and diversification into cross-border haulage are set to drive significant value for our shareholders and stakeholders,” said Mr Clarke.
In 2023, Unifreight Africa made substantial strides to solidify its position as a dominant force in the Zimbabwean transport sector through the successful deployment of 100 brand new FAW 380hp prime movers with Afrit trailers.
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