EO of Nampost says company’s business unit continues to operate in highly competitive business environment

WINDHOEK: The Chief Executive Officer (CEO) of Nampost says the company’s business unit continues to operate in a highly competitive business environment as technology poses a serious challenge to traditional mail services.

Festus Hangula made these remarks in the organisation’s annual report of 2013 tabled by the Deputy Minister of Information and Communication Technology, Stanley Simaata in Parliament on Tuesday.

Hangula said this is evidenced by the decline in mail volumes, adding that courier companies continue to enter the market due to its relative ease of entry, while Nampost’s savings bank has to contend with commercial banks being pushed into the low end of the market by regulatory requirements.

He stated that it is therefore commendable that the three major business units namely the courier, savings bank and postal services averaged a profit growth of 33 per cent during the financial year.

Hangula explained that the company achieved a growth in revenue of 14 per cent compared to 16 per cent in 2012.

He added that despite the massive 21 per cent contraction in mail volumes, the growth in other areas of the postal services department business was strong enough to propel the company positively forward.

SOURCE: NAMPA