ZINARA revenue bulks 39 percent

19 Jun, 2024 - 18:06 0 Views
ZINARA revenue bulks 39 percent

eBusiness Weekly

Business Writer

The Zimbabwe National Road Administration (ZINARA) has released its half year financial report, revealing a year of significant revenue growth.

Gross revenue reached $1,4 billion, exceeding the year’s budget by a remarkable 39 percent.

The positive performance is attributed to a combination of factors, including potentially increased toll fees.

Tolling revenue contributed 44 percent to the overall collections, of which 63 percent was in forex.

Toll fees for the premium roads (Harare-Beitbridge Road and Plumtree – Bulawayo – Harare-Mutare Road) were increased to US$4 from US$2 for lightweight motor vehicles, US$3 to US$6 for minibuses, US$4 to US$8 for busses, US$10 from US$5 for heavy vehicles and US$10 to US$20 for haulage trucks.

Zimbabwe’s critical Plumtree-Bulawayo-Harare-Mutare highway, a vital link connecting the country’s major cities, was rehabilitated in 2012 by the South African construction firm Group Five.

Toll fees for ordinary roads were raised to US$3 for lightweight vehicles, US$5 for minibuses, US$6 for busses, US$8 for heavy vehicles and US$15 for haulage trucks.

ZINARA prioritised reinvestment in the road network, allocating 73 percent of its budget – $909 million – to disbursements for road authorities.

This reflects a commitment to using revenue directly for its intended purpose and maintaining and improving Zimbabwe’s vital road infrastructure.

The focus on road-related costs extends even further, with 88 percent of all revenue earmarked for disbursements and related expenses.

Prudent financial management is another key takeaway from the report. ZINARA demonstrated its commitment to debt repayment by allocating $96,5 million towards the DBSA loan, bringing the agency’s debt servicing record up to date.

ZINARA also strategically invested in capital expenditure $3,6 million was allocated for critical upgrades to toll infrastructure and software systems. These investments are likely to improve efficiency in toll collection and ultimately contribute to a more sustainable revenue stream.

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