- CEO warns failure to digitise could lead to exclusion
- Says range includes e-govt, e-commerce to e-finance and e-social services
- Notes success of email, social and mobile media and decline in letter volumes
GAZETTE REPORTER
Botswana Post must adapt swiftly to the digital age to remain competitive, CEO Cornelius Ramatlhakwane emphasised at the launch of a partnership between Botswana Post and Funeral Services Group (FSG).
The collaboration, which aims to diversify the postal service’s offerings, marks a significant step in the organisation’s strategy to stay relevant in a rapidly changing industry.
Speaking at the event, Ramatlhakwane highlighted the urgent need for postal services to digitise their product portfolios, warning that failure to do so could lead to their exclusion from providing essential digital services that are increasingly in demand.
Exclusion risk
“To compete effectively, postal services need to speed up the digitisation of their products,” he said. “Postal operators that have not fully digitised and need to do so urgently or risk being excluded as digital service providers for e-government, e-commerce, e-finance services, e-value added services, and e-social services.”
He added that the shift to digital channels is not just a trend but a necessity as customers increasingly expect to interact with postal services online.
“With the world embracing digital technology at an ever-faster rate, customers are increasingly expecting to interact directly with the postal service through digital channels,” he said.
Ramatlhakwane underscored the critical role that postal infrastructure plays in government communications, noting that despite the growing importance of digital and mobile communications, postal services remain vital for connecting people, businesses and governments.
However, he acknowledged that the industry faces unprecedented challenges due to digital disruption. “The postal industry is grappling with its greatest challenge yet: digital disruption,” he noted.
Decline in letter volumes
“Historically, access to a postal network was as important as access to digital and mobile communications is now. The overwhelming success of email, social and mobile media have led to a decline in physical letter volumes and – more importantly – substitution by other means of communication.”
He cited data from the International Post Corporation’s Global Postal Industry Report 2023 that shows that aggregate mail volumes in advanced economies have declined by nearly a third since 2012.
“Digitisation has changed the role of the postal sector as letter volumes decline and parcel volumes grow,” said Ramatlhakwane.
New opportunities
“Whereas letter volume decline has shaped the postal market and continues to drive changes, advances in ICTs create new opportunities and demands for the postal market.”
He noted that the shift from letter to parcel delivery presents both operational and economic challenges for postal networks. As parcel volumes increase, he said, postal services must adapt their infrastructure and operations to handle the growing demand.
Ramatlhakwane said this shift necessitates not only digitisation but also diversification of services, citing a newly launched premium collection for FSG Funeral Schemes as an example in Botswana.
Relevance
Despite the challenges, he expressed confidence in the future of postal services, particularly as they embrace digital transformation. He noted that the trust and tradition associated with postal networks provide a strong foundation for their continued relevance in a digital world.
“One thing is safe to say: the importance of digital post will rise and hardly any commercial service can match the tradition and deeply ingrained trust that postal networks hold,” he asserted.
“But a rising public pressure for sustainability leads to a dire need for innovation when it comes to the postal industry. Trust is increasingly important.
More revenue streams
The partnership with FSG, which involves premium collection on behalf of the funeral service provider, aligns with Botswana Post’s broader strategy to diversify its service offerings.
Ramatlhakwane emphasised that this collaboration is part of a larger effort to enhance the range of services available at post offices, catering for the needs of the community while also boosting revenue streams.
“Moreover, it cements our pursuit to continuously enhance and diversify our revenue streams through services that provide affordable convenience to customers,” he said.