22 May 2014

After embarking on a journey to become a centre of excellence, Botswana Post turned its fortunes around to become a P500 million company with a cost ratio target of 60 percent by 2016.

Speaking at the unveiling of the company’s financial results , Mr Moleta said the journey to excellence was envisioned in 2009 and embarked upon in 2011 with the aim of meeting and exceeding customers’ expectations and transforming Botswana Post into a profitable entity.

He said the post office embarked on a business review process to identify definite strategies that could be executed to emulate success.

“The 2013 annual financial report reveals that revenue has doubled from P109 million to P240 million. Recorded total losses for the year stood at P12 million,” said Mr Moleta.

He said their success was driven by objectives that encompassed developing and implementing a cost containment strategy, improving profit margins, unlocking revenue potential in the property portfolio, growing and diversifying product and service offering as well as growing and utilizing a multi-channel approach.

“We managed to sustain our position as a high performing organisation through product diversification and high growth on non-mail products,” said Mr Moleta.

According to the annual report, revenue collected from mail, their core business, stood at P91.8 million. P35.6 million was collected through merchandise while agency payments stood at P39 million.

Mr Moleta also revealed that Botswana Post executed several initiatives which enabled customers to purchase electricity vouchers and pay their water bills through its branch network. Additionally, Botswana Post is a cash redemption point for Botswana Meat Commission.

The post office has also improved access to services, applied for vans licences and rolled out internet services such as wi-fi hotspots and corporate solutions.

“Our insurance products have received board approval and are awaiting launch in the next reporting period,” said Mr Moleta.

On other innovations, Mr Moleta said the newly launched PosoPay e-portal is highly convenient, allowing 24 hour access to services and for third parties to integrate and sell their products online.

However, despite these optimistic innovations on service provision, Mr Moleta said there still exist some external threats to Botswana Post, which include inadequate cash flow and failure to access funding because of unwilling lenders.

Botswana Post also spent P50 million on its workforce to train 400 staff members and transform them from traditional postal office services to the highly modernized environment, and enable them to easily assimilate into a technology enabling environment. Mr Moleta said Botswana Post is also faced with the challenge of providing universal postal services in the face of lack of funds.

The post office has had to source funds from external funders, including BIFM who loaned them P100 million.

“Despite all these challenges we will strive to deliver on our promise and reverse all negative equity situations.

It is also imperative for shareholders to assist with recapitalization of the company,” said Mr Moleta. ENDS