Universal Postal Union director general Masahiko Metoki with Broadcasting and Telecommunications PS Stephen Isaboke during the UPU postal leaders regulatory forum for Africa in Nairobi / CA/X
Governments have been urged to support the re-invention of public postal services in the continent to enable them tap into the growing multi-billion e-commerce space, cross-border trade and other opportunities.
This comes as leaders in the space move to formulate regulations that are aimed at putting these institutions at par with the private sector businesses, which have significantly eaten into the markets of these entities.
This is the likes of Postal Corporation of Kenya which continues to face stiff competition from private courier operators and other players.
Latest data by the Communication Authority shows that for instance, domestic letters and parcels sent through private courier operators totalled 813,741 and 3,706,664, respectively, accounting for more than 70 per cent of the total business.
While the postal sector plays an important role in the socio-economic development across the continent, public owned entities have been poorly performing across countries.
This has been blamed on among others, low reliable delivery network, slow technological adoption and lack of proper strategic investments.
In his speech read by Broadcasting and Telecommunications PS Stephen Isaboke, during the Universal Postal Union (UPU) postal leaders regulatory forum for Africa in Nairobi, ICT Cabinet Secretary William Kabogo said: “We must turn around our public postal utilities by re-imagining their business models and strategies from the current letter-post orientation.”
He said these institutions must diversify service offerings, undergo digital transformation and entry into the lucrative e-commerce market which provides new pathways to financial sustainability, allowing the post to reclaim its past glory.
including economic growth, social development, digital financial inclusion, intra-african trade and infrastructure development.Kabogo said, By leveraging its existing network and trusted reputation, the postal sector can contribute to the attainment of key aspects of African Union’s Agenda 2063,
UPU research shows that if well optimised, postal services could contribute close to seven per cent to a country’s GDP, a target that is within reach of all postal administrations within the region.
A 2023 report indicated that African postal industry processed over 1.2 billion items, a testament to the endurance and relevance of the sector, driven by accelerated digital transformation across the continent.
According to data from Statistica, global revenue in the e-commerce market is projected to reach $4.32 trillion (Sh 559.9 trillion) in 2025.
“Sadly, Africa’s share of the global e-commerce revenue is estimated at less than three per cent, meaning that Africa is punching way below its weight. With the high digital and youth dividend in Africa, the post must catalyze the growth of the region’s share of the global e-commerce market, thus opening new avenues for employment and business,” Kabogo said.
Communications Authority Director General David Mugonyi laws and regulations must evolve to reflect the “new reality” of e-commerce, digital IDs, cross-border payments and smart logistics.
“As custodians of public interest, enablers of innovation, and the stewards of policy in a rapidly evolving landscape, it is our responsibility to deliver a progressive regulatory framework,” said Mugonyi.
The postal sector is seen as a potential driver of the intra-African trade under the African Continental Free Trade Area (AfCFTA), while also ensuring last-mile delivery of international goods in local markets.
“We need interoperable systems, coherent policies and shared data standards that transcend national boundaries. We must promote cross-border collaboration and regional harmonisation, to usher in a new era for the post,” he said.
