ZUPCO eyes truck business
State-owned Zimbabwe United Passenger Company (ZUPCO) will soon start operating a truck business as it seeks to diversify revenue streams, a senior official has said.
“In the next three months, we should see some ZUPCO trucks coming to areas like Honde Valley to provide services to banana farmers,” Dr Talon Garikayi, a ZUPCO board member told delegates at a business seminar in Mutare last week.
He was among the speakers at a seminar for Small to Medium Enterprises (SMEs) in Manicaland hosted by the National Competitiveness Commission (NCC) last Thursday.
He said venturing into the transport business was driven by the need to innovate.
“Innovation is a continuous process,” said Dr Garikayi, who is also Harare Institute of Technology pro-vice-chancellor in charge of Research, Innovation and Development.
“You cannot remain relevant because you did something last year. It’s no longer about the price or quality…innovate or perish.”
Honde Valley in the Manicaland province is the country’s largest producer of bananas, which are often transported to the markets, mostly in Harare on bus carriers or by trucks.
In 2021, bananas production in Zimbabwe was 189 499 tonnes, according to statistics.
ZUPCO has been traditionally operating passenger buses and analysts say the truck business would enhance the viability of the business. “Beyond carrying bananas from Honde Valley, I think there are more opportunities that the new venture can enjoy.
“These are related businesses and ZUPCO will be able to leverage its existing competencies to run a fairly competitive business. ZUPCO has already acquired fuel tankers.
Dr Garikayi noted three major conditions necessary for firms’ competitiveness including sustainability, which focuses on long-term performance. This also involves relativity, concerning how competitive a firm is when compared with other players.
The other factor is controllability, a condition related to the various resources and capabilities of a firm rather than simply the favorable external conditions leading to superior performances. In addition, dynamism provides the company with the ability to continually create new forms of competitive advantages, said Dr Garikayi.
-ebusinessweekly
