Uganda Post Struggles to Adapt Amid Digital Shift

Summary:

• Uganda Post is struggling to adapt to the digital age, with many customers failing to renew Post Office box rentals. Despite efforts to digitize services, the company faces challenges in maintaining relevance as traditional mail services decline.

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Vintage photographs of signposts and busy post offices across Uganda evoke memories of a time when letters were the primary means of communication. However, with the rise of the internet and smartphones, traditional mailing has become nearly obsolete. As letter-writing faded, Uganda Post, also known as Uganda Posta Ltd (UPL), faced a critical challenge: adapt or face decline. Today, the company is working to digitize its services to remain relevant in an age dominated by instant messaging and email.

During a December 16, 2024, meeting with Parliament’s Ad Hoc committee, UPL Managing Director James Arinaitwe highlighted a growing issue: many customers fail to renew their Post Office box rentals. “We sell P.O. Box addresses to various clients, including government ministries, businesses, and individuals, but there is a worrying trend. Many companies and individuals rent an address, but fail to renew it the following year,” Arinaitwe explained. He pointed out that some businesses, after registering and paying taxes in their first year, disappear by the second year, leaving no trace.

Arinaitwe shared his own experience working with the Uganda Revenue Authority (URA), where similar patterns were observed. He acknowledged that some businesses were mere speculators, opening addresses for short-term transactions before moving on.

Despite these challenges, Arinaitwe expressed optimism about the potential of digitizing postal services to improve customer traceability, although some clients have shown little interest in such changes.

A Physical Box Address offers a secure mailing address linked to a customer’s phone, email, and online account. It allows for real-time notifications of deliveries and the option to request item pick-up or delivery services. The cost of maintaining a postal address varies annually, with companies paying Sh90,000, upcountry companies Sh60,000, and individuals and businesses Sh20,000.

Committee chairperson Faith Nakut, the Napak Woman MP, raised concerns about inconsistencies in the system. She shared her personal experience of maintaining a family postal address for 27 years, even after her parents’ passing. “When I took over the postal address, I was told that if I didn’t pay between January and March, my address would be given to someone else. I worked odd jobs to ensure it was paid. Why is it now that others are not paying, and UPL is not taking action?” Nakut questioned.