Unifreight, Cheetah deal awaits CTC approval

LIVINGSTONE MARUFU

Unifreight Africa Limited’s proposed US$2.08m acquisition of Cheetah Express Logistics (Private) Limited is awaiting approval from the Competition and Tariff Commission (CTC), a regulatory step required before the transaction can be finalised, Business Times can report.

The deal is seen as potentially transformative for Zimbabwe’s transport and logistics sector.

Under the proposed transaction, all rights attached to Cheetah Express Logistics’ role as the sole authorised FedEx Global Service Participant in Zimbabwe will be transferred to Unifreight upon completion, significantly expanding its international logistics footprint.

Unifreight chief executive Richard Clarke said the acquisition establishes a direct link into a global delivery network through Cheetah’s existing FedEx partnership, strengthening the group’s medium-term earnings profile and broadening its customer offering.

“This transaction awaits final approval from CTC,” Clarke said.

Unifreight has acquired an effective 86.67% stake in Cheetah, which operates as Zimbabwe’s exclusive authorised FedEx Global Service Participant. Following completion, Unifreight will become the majority shareholder.

The purchase consideration of US$2.08m is being financed through US$210,000 in internally generated cash and US$1.87m drawn from existing overdraft facilities with two local financial institutions.

The facilities carry a fixed interest rate of 10.5% per annum and are repayable over three years.

Clarke said the structure provides cost certainty as the group integrates the acquisition and scales up earnings from the business.

“This gives the group certainty over the cost of funding while it integrates the acquisition and builds out the earnings contribution from the business,” he said.

He added that the group is entering a new phase of expansion, supported by both the express logistics platform gained through Cheetah and increased corridor-based transport capacity through the rollout of new FAW 380FT truck tractors.

Cheetah’s business is expected to add a less asset-intensive, higher-margin service platform, complementing Unifreight’s existing freight operations and strengthening its position as a diversified end-to-end logistics provider.

The board has allowed gearing to rise deliberately to secure the acquisition and fund fleet expansion, reflecting its long-term growth strategy.

As part of its fleet replacement and expansion programme, the first 40 FAW 380FT truck tractors paired with Afrit trailers have already been delivered. Management said extensive operational testing confirmed the model’s suitability for the Beira Corridor route.

The group said the FAW 380FT has demonstrated strong reliability, lower cost per kilometre compared to other tested units, and fuel efficiency of approximately 2.34 kilometres per litre.

Clarke said the investment aligns with Unifreight’s strategy to deepen its presence on the Beira Corridor, a key cross-border growth route.

Unifreight also reported a strong start to 2026. Group revenue for the first quarter reached ZWG 211m, 79% above budget. Gross profit came in at ZWG 53.8m, 108% above budget, while EBITDA rose to ZWG 17.3m against a budget of ZWG 2.5m. Profit before tax stood at ZWG 3.8m, compared to a budgeted loss of ZWG 11.4 million.

The group moved 63,173 tonnes during the quarter, 22% above budget, and covered 2.26m kilometres, slightly above target despite operating an average fleet of 266 trucks versus a budgeted 290 units.

Management attributed the outperformance to improved fleet utilisation, stronger route discipline, and efficient use of available capacity.

However, operating costs remained elevated. Fuel consumption was broadly in line with budget at 878,134 litres, but higher pricing pushed fuel costs to ZWG 34.6 million, 64% above budget. Repairs and maintenance costs were 110% above budget, subcontracting costs 97% higher, and total support service costs up 56%.

Despite cost pressures, revenue growth outpaced expenses, resulting in a gross margin of 25% versus a budgeted 22% and an EBITDA margin of 8%, significantly above the 2% budgeted level.