UNIFREIGHT Africa Limited, a prominent transporter listed on the Zimbabwe Stock Exchange, has significantly expanded its footprint in the country's tobacco industry.
The company now handles over 20% of the total tobacco crop, marking a substantial increase in its market share.
In the company's 2023 annual report, chief executive officer Richard Clarke highlighted tobacco transportation as a cornerstone of their operations.
“We have successfully secured a larger share of the tobacco market and now transport over 20% of the total Zimbabwean tobacco crop,” Clarke said.
“With the addition of new prime movers, we transported 38 million kilogrammes of tobacco from the regional floors, a 70% increase from the previous year.
“This surge not only solidified our market leadership but also contributed significantly to our revenue growth.
“Our strategic focus in 2024 and beyond includes continued fleet expansion and diversification of revenue streams.
“Although the 2024 season has only achieved 75% of the bumper 2023 season, we still managed to secure well over 30 million kilogrammes from the regional floors and have grown our market share. We aim to grow our share even more in the 2025 season,” he said.
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Clarke said Unifreight was well-positioned for sustained growth and profitability.
The company is committed to upgrading its 35 depots, starting with major centres, and has begun implementing the latest fleet monitoring technologies to ensure optimisation.
With the foundational 100 new FAW prime movers, Unifreight plans to expand into cross-border and contract haulage, aiming to add between 30 and 60 new FAWs to the cross-border fleet before year-end.
“This will help us increase foreign currency earnings, reduce seasonal revenue fluctuations, mitigate risks associated with downturns in the local manufacturing sector, as observed during the first quarter of this year,” he said.
Clarke also highlighted the positive impact of Zimbabwe's new currency, ZiG, on business stability.
He said it had 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,” Clarke noted.
“The new currency has 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.
“The introduction of a currency backed by tangible assets has increased confidence among investors and the business community.
“This confidence is vital for attracting both local and foreign investments, which are essential for economic growth,” he said.
While acknowledging the challenges presented by the introduction of ZiG, Clarke emphasised the opportunities it has created 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," he said.
The company intends to focus on fleet expansion, high-revenue sectors like tobacco, and diversification into cross-border haulage to unlock value for shareholders and stakeholders.
"We are excited about the future and confident in our ability to deliver enhanced value," Clarke concluded.
Unifreight Africa has been a stalwart in the Zimbabwean market for the past 78 years, demonstrating resilience and adaptability in a dynamic economic environment.
