- Unifreight Africa anticipates a top line of US$32 million
- The topline is to be driven by investments in Fourth-Party Logistics (4PL) and Cross-Border Units launched in late 2024
- Group revenues increased by over 30% year-on-year
Harare-Unifreight Africa is projecting a FY2025 top line of US$32 million building on its latest investments in Fourth-Party Logistics (4PL) and Cross Border Units which came online barely 12 months having launched in late 2024.
These two units though at their nascent level have driven revenue growth in the first quarter ended 31 March 2025 according to the group’s latest trading update.
The 4PL unit launched in late 2024 as a logistics integrator overseeing supply chain and vendor management managed substantial freight volumes by leveraging Unifreight’s expansive logistics network to secure high-volume contracts by executing a significant project to move over 30,000 tons of goods from Beira, Mozambique, into Zambia and Zimbabwe.
‘’The 4PL operation contributed a healthy share of first-quarter revenues and even delivered additional monthly profits that were not present in the prior year,’’ Group Chief Executive Officer (CEO) Richard Clarke said.
On the other hand Cross-Border Transport division, a unit established to capitalise on regional freight opportunities and to complement domestic operations defied odds in the transport sector contributing one-fifth of the total revenue which grew by over 30%.
The group has scaled up cross-border routes, and the division now operates a dedicated fleet of over 100 trucks serving regional lanes reflecting successful onboarding of new cross-border contracts and clients, especially in neighbouring countries.
“We moved significantly higher volumes of goods between Zimbabwe, Zambia, Mozambique and beyond, leveraging our expertise in regional logistics,” Clarke said
These early achievements were obtained despite operating in a tough environment with regards to the transport sector.
Operating costs in Zimbabwe are significantly higher than in neighbouring countries, which continues to squeeze margins. 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 while vehicle registration and licensing fees are also exorbitantly high at roughly US$1,560 locally versus just US$132 in Zambia.
Diesel imports also carry heavy duties (approx. USD 0.55 per L) and exporters must surrender 30% of foreign earnings for conversion into local currency (ZWG), which cannot be freely converted back to USD at market rates. These factors make operating a cross-border fleet out of Zimbabwe less attractive and more costly than regional competitors, compounded by cost pressures is the ongoing liquidity crunch in the banking sector.
During the quarter, the group integrated 20 new FAW 28.380 FT trucks in its fleet tackling previous delays in cross-border operations by enhancing real-time operational control.
As a result, group revenues surged by over 30% compared to the same period last year with annual turnover rising from US$20.4 million in 2023 to US$24 million in 2024.
The company has secured additional merchant contracts to transport significantly higher tobacco volumes, a key revenue driver for its Swift Transport brand.
Unifreight achieved an average fuel efficiency of 2.30 km per and maintained overall fleet availability rate of 92% .
Looking ahead, Unifreight remains optimistic about its prospects for 2025, particularly with an expected bumper tobacco harvest in Q2.
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