Almot Maqolo, Staff Writer 
NATIONAL Handling Services Zimbabwe (NHS) expects its business class lounges to contribute six percent of total group revenues this year, following a rebranding exercise at several major airports nationwide.
The move comes amid financial challenges and evolving market dynamics.
“With the business class lounges, we are looking at hitting the six percent mark because they were around four percent,” said NHS acting chief executive, Phillip Rambakudzibwa.
“We believe that with the passengers we are seeing, this will increase both numbers and revenue. First-class passengers, in particular, pay more.”
NHS is also pursuing an ambitious strategy to reduce reliance on ground handling by diversifying its income streams.
“Our cargo business holds significant opportunities, particularly in handling fresh produce,” Rambakudzibwa said.
“With infrastructure improvements and an upgraded cold chain in our cargo warehouse, we expect to strengthen our financial position. For 2025, we are targeting 30 percent of our total revenue from the cargo business.”
According to the company’s most recent annual report, 2023 saw increased activity, driven by new airline operations in Zimbabwe, including SafAir, CemAir, and Royal Eswatini Airlines. However, the year also brought challenges.
Fastjet Zimbabwe, a key client contributing 31 percent of NHS’s revenue, ended its contract in November 2023 to partner with a different ground handling operator.
“Losing Fastjet in the third quarter of 2023 created a significant revenue gap,” Rambakudzibwa said.
“However, moving into 2024, we secured new business with SafAir and Royal Eswatini Airlines, which helped offset the loss.
“Other carriers also increased their flight frequencies, turning our revenue position around. As we head into 2025, we anticipate even better results.”
NHS has implemented several measures to remain competitive, including investing US$1,7 million in ground support equipment and launching employee retention programmes. Nevertheless, NHS’s financial position remains a concern. The company is technically insolvent, with auditors raising questions about its viability. This issue persisted throughout 2023 and into late 2024.
“We need a robust debt retirement strategy to stabilise our balance sheet,” Rambakudzibwa said. “Restructuring our costs to ensure profitability in 2025 is crucial.”
Looking ahead, NHS aims to meet its obligations, cover operational expenses, and reduce debt incrementally by negotiating payment terms with creditors.
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