The postal parastatal’s main income lines are mail/postal, courier services, warehousing and agency, the latter being the biggest contributor which involves service agreements for use of BotswanaPost’s vast network.
BotswanaPost suffered pre-tax losses of P83.4 million for the 2023–2024 financial year, up from losses of P21.5 million due mainly to higher credit loss allowances. The allowances are related to trade receivables which are the amounts the parastatal is owed and expects to receive from its customers and service partners.
Directors writing in the recently released annual report said the revenue figure for 2023–2024 falls four percent short of the initial target.
The performance is primarily attributed to a significant 29% decline in traditional mail volumes, highlighting a broader shift in consumer behaviour and the changing landscape of communication.
Acting Chief Financial Officer, Letsogile Moampe, explained that the reduction in mail volumes is part of a natural trend in the industry. As the world increasingly embraces digital communication, BotswanaPost has had to adapt and evolve, he said.
Moampe pointed out that the decrease in traditional mail is not unexpected and aligns with the realities the company has been preparing for.
"The natural shift towards email, online bill payments, and digital messaging has resulted in a 31% decrease in mail volumes over the past seven years. This shrinkage is expected to continue and accelerate," Moampe said.
He emphasised that BotswanaPost is focusing its efforts on unlocking new avenues for growth, improving cost-effectiveness, and ensuring customer satisfaction.
The decline in traditional mail volumes is a clear reflection of the global trend towards digital platforms, which has pushed BotswanaPost to diversify its operations.
Moampe stressed that the organisation’s transformation is far beyond the conventional postal services of the past adding that the company is embracing digitisation to diversify its revenue streams and position itself for long-term success.
One of the core strategies driving BotswanaPost’s future success is its ongoing digital transformation. By reducing reliance on in-person, over-the-counter transactions, the company is tapping into new markets and improving operational efficiency. Digitisation not only streamlines internal processes but also offers customers convenient access to services through secure online platforms.
"Digitisation enables us to streamline operations, offering products and services through secure online platforms that are intuitive to use and accessible anytime, anywhere," Moampe added.
This shift is growing BotswanaPost's reach exponentially, effectively expanding its postal footprint by offering more versatile and customer-friendly services.
The move towards a digital future also promises greater agility and innovation, allowing BotswanaPost to swiftly respond to shifting market demands. The company believes that by investing in technology and digital infrastructure, it is creating a sustainable business model that will ensure future readiness.
Meanwhile, Botswana Post says it has faced challenges in securing full and timely payment for the services it provides under the Universal Service Obligation.
The USO as prescribed by the Universal Postal Union, requires BotswanaPost to provide “high-quality postal services to every Motswana wherever they may live across the vast terrain of our country”.
The postal parastatal noted that while it was pouring resources into the USO mandate, securing “full and on-time payment” was historically a challenge.
The issue of non-payment reached new heights in 2023, with the parastatal suffering record losses amounting to P80.9 million.
