Zimbabwe freight firm eyes South Africa market

Zimbabwe's freight and shipping company Renland (Pvt) Limited is now gearing to strategically position itself on the regional market by setting up bases in South Africa, The Sunday Mail reported.

The fledgling company is understood to be targeting Messina, Johannesburg and Durban as they are conveniently located to do business, particularly in the southern African region.

The country's tax collection body, Zimbabwe Revenue Authority, is in the process of harmonizing its systems so that they synchronize them with those used in other parts of the region in preparation for the Common External Tariff system that is to be adopted by the Southern African Development Community region.

Obert Chivasa, managing director of Renland (Pvt) Limited, said his company was aggressively establishing itself in the regional business so that it would not be exposed and adversely affected by any effects that might be prompted by the harmonization of the tax system in the region. Most of the players in the sector use third parties to conduct business with clients from South Africa. Trade between South Africa and Zimbabwe stands at more than 50 percent, which underlines South Africa's status as the country's biggest trading partner.

Zambia, as the country's second largest business partner, is naturally another market that is considerably relevant to the freight and shipping business, even though the volumes are still low. At present, Renland has its footprints in Beitbridge, Chirundu and Plumtree.

Earnings in the freight and shipping business are directly linked to the volumes of imports, especially raw materials, into the country, with big corporates contributing the bulk of business to the sector.

However, the hyper-inflationary environment that has adversely affected business has, to a large extent, been affecting imports, a development that has also negatively affected the industry.

Some of the players in the industry have also been caught in compromising positions by Zimra, especially during the currency reforms when they were ordered to submit up-to-date details of their transactions before the changeover to the new system.

Source: Xinhua