LISTED transport and logistics concern, Unifreight Africa Limited says the country's tough economy added to high licensing fees is making operations very tough.
Industry has since raised similar concerns with the government over the years, now with several promises to deal with the problem being made. Several value chains in the economy are clogged with very costly, repetitive licensing fees, choking the ease of doing business.
Echoing similar sentiments recently, Unifreight's CEO, Richard Clarke, bemoaned the exorbitant licensing fees affecting transport sector players in the country.
"In the transport sector specifically, operating costs in Zimbabwe are significantly higher than in neighbouring countries, which continues to squeeze margins. For example, fuel in Zimbabwe remains the most expensive in the region at around US$1,58 per litre, compared to about US$1,01 in Zambia. Vehicle registration and licensing fees are also exorbitantly high at roughly US$1,560 locally versus just US$132 in Zambia," he said.
Additionally, he said, diesel imports carry heavy duties (approx. USD 0.55 per litre) with exporters being forced to surrender 25% of foreign earnings for conversion into local currency (ZWG), which cannot be freely converted back to US$ at market rates.
Clarke said the combination of these challenges, added to currency volatility, liquidity constraints, inflationary pressures and a shortage of long-term financing in the local market, led many businesses to tighten their belts, creating a knock-on effect across supply chains.
The company said compounding cost pressures is the ongoing liquidity crunch in the banking sector prompting many financial institutions to pull back on lending, forcing companies, including Unifreight and our customers, to rely on shorter-term and more expensive financing.
"These factors make operating a cross-border fleet out of Zimbabwe less attractive and more costly than regional competitors," Clarke said.
Meanwhile, during the period, Unifreight Africa Limited delivered a strong start to 2025, with significant revenue growth in Q1.
Total revenues for the quarter surged by over 30% compared to the same period last year, reflecting robust demand and the success of recent strategic initiatives. Annual turnover rose from US$20.4 million in 2023 to US$24 million in 2024, and is forecast to reach US$32 million in 2025.
