Post services remain afloat despite technology advancement – official

Revenues generated by National Post Office are expected to continue increasing following a new partnership with e-commerce companies to deliver goods to clients in different parts of the country, officials have said.

Speaking at a news conference in Kigali on Monday, the Director-General of the National Post Office, Celestin Kayitare, said that the institution’s turnover increased from Rwf967 million annually in 2012 up to Rwf1.3 billion to date, largely due to integration of e-commerce in their services.

The news conference was organised to brief journalists on World Post Day that falls annually on October 9.

This year’s event was marked under the theme, “Transform to remain an enabler of inclusive development and an essential component of the global economy.”

“The revenues from stamped mails such as letters have reduced by 60 per cent but, despite the challenges associated with the advent of new technologies, the revenues from distributed packages have increased by over 60 per cent in recent years. Investing in e-commerce has significantly improved our revenue,” he said.

He explained that delivery of small parcels from e-commerce companies outside and inside Rwanda in the first six months of 2017 generated Rwf9 million up from Rwf5 million, in the same period last year.

“We see e-commerce as a big opportunity for us,” he said, also citing Rwanda Revenue Authority which charges taxes from products procured online.

Kayitare said they had signed contracts with e-commerce companies and were also in touch with Israel Post Office over an upcoming study tour on how their (Israel’s) post facilitates Alibaba (a global e-commerce company) deliver ordered goods to clients.

He said that express mail services in the first six months of 2017 generated Rwf49 million, up from Rwf33 million in the same period last year.

He said that although mobile technology, internet, introduction of electronic signatures and stamps have negatively impacted on postal services, the post office is seizing emerging opportunities such as working with e-commerce companies.

The office, he said, has also ordered for 15 new motorcycles and two trucks to transport parcels from e-commerce companies in Kigali city.

It is also working with public transport companies as partners to distribute mails to different clients.

“We have signed an MoU with RITCO (transport company) so they can help us reach more clients across the country as we do not have enough cars to do everything ourselves,” the official added.

Asked about the challenges they face in their day-to-day operations, he cited locating physical addresses of clients as street-naming is at 60 per cent in the City of Kigali, and 20 per cent in the six secondary cities across the country.

In other parts of the country, he said, it is even harder to locate one’s address.

“In Rwanda, street-names, as well as codes for homes and institutions is new and yet this is a necessity for postal services and e-commerce because it makes it easier to locate clients,” he said.

For postal code, he said, they are currently undertaking a pilot project in Kigali’s Kacyiru Sector to make it easier to trace clients.

Post services are active in 172 countries across the world.

The New Times

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