African post services must diversify or die

KAMPALA – African postal services must diversify into lucrative businesses like money transfers and direct marketing or lack of government support will force them out of operation, the head of Posta Uganda said on Friday.

National post organisations are suffering worldwide as volumes of traditional letters fall and more people use e-mail, the Internet and mobile telephones to communicate. In Africa, many rural post offices are little more than dilapidated shacks.But often they are the only network capable of reaching the majority of the population who live in villages.Some believe they could also be used to bring new electronic services to millions of customers.”All African postal services must diversify into these new businesses or risk going out of business,” Posta Uganda’s managing director Alex Mulooki told Reuters in an interview.”In many African countries, the postal service has been neglected or totally ill-funded.But there are reasons for hope, and lots of opportunities.”Mobile telephone use has boomed across the world’s poorest continent in the last decade, bringing a new hunger for information and services that national postal organisations are uniquely placed to fulfil, Mulooki added.The World Bank is working with Posta Uganda to help it eventually offer Internet services and training at many of its 300 post offices.These upgraded centres will also be used for its local and international money transfer business.Ugandans working overseas are a key plank of the nation’s economy, with estimated remittances doubling in the last seven years to around US$500 million annually.”If we can catch just 20 per cent of that crucial market, we can boost all the other business areas,” Mulooki said.Posta Uganda is also looking at using information on its large customer base for direct marketing, or bulk mail deliveries of advertising materials.It is also working with the government and utility providers to update billing systems.But it is calling for more support from the government, and says that is what is needed across Africa.”The postal sector plays a very big role in every country’s economy,” Mulooki said.”But it is rarely given the support it needs.We want all stakeholders to understand that.”Nampa-ReutersIn Africa, many rural post offices are little more than dilapidated shacks.But often they are the only network capable of reaching the majority of the population who live in villages.Some believe they could also be used to bring new electronic services to millions of customers.”All African postal services must diversify into these new businesses or risk going out of business,” Posta Uganda’s managing director Alex Mulooki told Reuters in an interview.”In many African countries, the postal service has been neglected or totally ill-funded.But there are reasons for hope, and lots of opportunities.”Mobile telephone use has boomed across the world’s poorest continent in the last decade, bringing a new hunger for information and services that national postal organisations are uniquely placed to fulfil, Mulooki added.The World Bank is working with Posta Uganda to help it eventually offer Internet services and training at many of its 300 post offices.These upgraded centres will also be used for its local and international money transfer business.Ugandans working overseas are a key plank of the nation’s economy, with estimated remittances doubling in the last seven years to around US$500 million annually.”If we can catch just 20 per cent of that crucial market, we can boost all the other business areas,” Mulooki said.Posta Uganda is also looking at using information on its large customer base for direct marketing, or bulk mail deliveries of advertising materials.It is also working with the government and utility providers to update billing systems.But it is calling for more support from the government, and says that is what is needed across Africa.”The postal sector plays a very big role in every country’s economy,” Mulooki said.”But it is rarely given the support it needs.We want all stakeholders to understand that.”Nampa-Reuters