Almot Maqolo, Staff Writer 
NATIONAL Handling Services Zimbabwe (NHS) says starting this year, it will unlock more value from its cargo business by allowing it to operate independently while it focuses on ground-handling business as part of a long-term strategy.
This comes in the face of financial pressures and shifting market dynamics. NHS is laying out an ambitious plan to reduce dependence on ground handling by diversifying its revenue streams.
“Our cargo business holds vast opportunities, particularly in handling fresh produce. With infrastructure improvements and an upgraded cold chain in our cargo warehouse, we expect to improve our financial position.
“With the cargo business, we are expecting that for 2025, we can push it to 30 percent of our total revenue,” NHS’s acting chief executive Phillip Rambakudzibwa, told The Financial Gazette recently.
NHS continues to be the leader in ground handling operations in Zimbabwe.
According to NHS’ latest available annual report, the year 2023 was characterized by increased business, as witnessed by new airline operations into Zimbabwe, such as SafAir, CemAir, and Royal Eswatini Airlines.
Fastjet Zimbabwe discontinued its contract with NHS to partner with another ground handling operator in November 2023.
“However, in 2023, we entered a more competitive environment and lost one of our top revenue earners, Fastjet, which had contributed 31 percent of our total revenue. This loss occurred in the third quarter of 2023.
“Moving into 2024, we acquired new business with SafAir and Royal Eswatini, which helped fill the gap left by Fastjet. Other players also increased their flight frequencies, turning our revenue position around. As we enter 2025, we anticipate even better fortunes,” Rambakudzibwa said.
NHS implemented several strategies to maintain excellent customer service and competitiveness through investment in ground support equipment worth US$1,7 million, and employee retention programmes.
However, the NHS’ statement of financial position remains a concern. From an accounting perspective, the company is technically insolvent, and its auditors have flagged its going concern status. This challenge persisted from 2023 into the end of 2024.
“We need a robust debt retirement strategy to stabilise our balance sheet. Restructuring our costs to ensure profitability in 2025 is crucial,” he added.
In its outlook, the company aims to meet its obligations, cover all current expenses, and retire debt incrementally by agreeing on payment terms with its creditors. newsdesk@fingaz.co.zw
