Nampost 2013 annual report tabled in Parliament

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.

“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,” he stated.

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.

“As a consequence, profit for the postal services business unit increased by 34 per cent,” he noted.

The CEO also pointed out that at the end of the financial year in 2012, Nampost had 38 post offices out of 135 (28 per cent) that were not profitable.

However at the end of this financial year, the organisation had 25 post offices out of 136 (18 per cent) that were not profitable.

“This means Nampost reduced the lossmaking post by 13 post offices (34 per cent). We will continue with strategies that will ensure that all post offices maximize the revenue opportunities and where feasible become profitable,” Hangula said.