UPU Mission Report 12th June 2019
UPU Mission Report 12th June 2019
UPU Mission Report 12th June 2019
country:
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Definition of terms
CA – Council of Administration of UPU
GPO – General Post Office
IFS – International Financial Systems
IPS – International Postal Systems
MPT&T – Ministry of Post, Telecommunication and Technology
UPU – Universal Postal Union
USO – Universal Service Obligation
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1. Introduction
Somalia experienced civil strife from 1991 which destroyed most of the country’s basic
infrastructure, including postal services. As part of the reconstruction of national
infrastructure, the Somali Government intends to restore postal services as an affordable
means of communication.
In this regard, UPU initiated this mission vide their letter reference 7151 (DCDEV.PRAF)
dated 8th May 2019. The mission was carried out in Nairobi between 22 nd and 31st May
2019. The mission activities were mainly undertaken through telephone calls, face to face
meetings and desk study.
In order to facilitate the mission, a national project counterpart, namely, Mr. Ahmed Ugas
was appointed. The counterpart and the Somali team were readily available throughout
the mission. The following persons were instrumental in the providing information used in
this report.
1. Hon. Eng. Abdi Ashur Hassan, Minister of Post, Telecommunication and
Technology.
2. Hon. Abdullahi Bile Noor, State Minister for Post.
3. Mr. Ugas Ahmed, Somali Post Project Lead and national counterpart.
4. Mr. Abdulaziz Duwane, Director General MPT&T
5. Abdulrahman Maalim Adow, Former Director General MPT&T who is currently
deployed at head office.
6. Mr. Aweys Hussein Hassan, Ag. Director of Posts.
2. Mission objectives
The key objective of the mission was to carry out institutional review of Somalia Post in
order to determine its current state and requirements for restoration of postal services.
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3. Current state of Somali Post
3.1 Standing with UPU
Somalia had been in default with its mandatory contributions to UPU since 24 th
September 1982 and had been placed under automatic sanctions.
The country regularised its membership with UPU on 9th April 2019 by signing an
amortization schedule to clear up its financial situation with respect to arrears of
mandatory contributions to the Union and Translation Services. According to the
agreement, the total debt of 1,885,117 CHF will be paid in equal instalments in 10 years
effective December 2019. Consequently, automatic sanction was lifted thus allowing
Somalia to participate in Union activities.
A request by Somalia for waiver of interest and penalties amounting to 817,991.5 CHF
will be presented to CA meeting in October 2019 in line with Article 149.7 of the General
Regulations.
Somalia terminated its Arabic translation service effective April 2019 vide their letter
reference WBIT/XW/0349/2019 dated 10th April 2019 in order to lessen its indebtedness
to the Union.
Somalia sought technical assistance in April 2019 from the UPU Disaster Recovery
Management (DRM) Project to establish an international mail processing centre at
Mogadishu’s Adan Ade International Airport. The result of the application is expected in
July 2019.
Recommendation
Regularly pay instalments as per the amortisation agreement to avoid default which
will result in recalling the full sum owed to the Union;
Mobilise support from CA members to consider and approve waiver of interest and
penalties amounting to 817,991.5 CHF in next CA meeting scheduled for October
2019;
Identify and reserve appropriate site for set up of international mail processing centre
at Mogadishu’s Adan Ade International Airport; and
In October 2017, the Somali Government enacted Communication Laws which primarily
focus on information and telecommunication sectors. These laws have no provision for
postal regulations. However, the Minister has authority to enact policies and regulations
to govern the postal sector as a department of the Ministry.
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The laws provided for the establishment of an industry regulator. Consequently, the
National Communication Authority has been established with semi-autonomous board of
directors. The Authority has already licensed the telecommunication operators in the
country and has taken over the management of the country’s Top-Level Domain (TLD)
.so. The country is experiencing high quality telecommunication services which are
available throughout the country.
The Government has allocated annual budget of US $250,000 to Somali Post for
recurrent and operational expenses. Of this amount, about US $100,000 is expected to
be used annually to pay outstanding UPU liabilities. Thus, the budgetary allocation is not
enough to support the reconstruction and business development efforts.
The Ministry is considering engaging development and donor agencies such as the World
Bank and UNDP who are providing support in the restoration of infrastructure in Somalia.
Recommendation
Issue a policy statement proclaiming the Government’s position on Somali Post;
Enact postal legislation or regulations to establish Somali Post and govern the postal
industry;
Develop annual budget for the restoration of postal services.
Review the Communication Laws to provide for funding of Universal Postal Service
by the National Communication Authority.
Follow up on request for technical and financial assistance with members of CA; and
Seek financial and technical support from development partners and donor agencies.
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There is no organisation structure nor job descriptions to guide in management and
service delivery.
Training on postal operations or management has not been undertaken for over 30
years. However, with support from UPU, a few staff were trained on mail processing
at Djibouti Post in 2014. There is therefore urgent need to develop human capacity to
drive the restoration process.
Recommendation
Develop an organisation structure that will fulfil the strategic plan.
Develop human resource policies and procedure to guide in management of the
human capital.
Development of respective job descriptions and key performance indicators for each
post.
Review the staff deployment and undertake necessary recruitment.
Undertake staff training on postal management and operations.
The Mogadishu GPO has front office counters, a sorting office and operational back
offices. Services currently offered are letters and parcel post. Key operational tools
available include a mail van, a motorcycle, various office equipment, furniture and internet
service. In 2016 – 2017, UPU supplied postal equipment and a mail van as part of its
technical support. However, there is need for more postal operational tools particularly
consumables.
Somali Post has developed corporate branding which is displayed on its mail van, website
and retractable banners. It has presence in social media via its website www.posta.so
which is regularly updated. It also operates a FaceBook page www.fb.com/PostaSomalia
and is on Twitter @PostaSomalia.
A total of 1,932 letter post boxes are installed at GPO of which 132 are rented. Of these,
62 are rented by Government ministries and agencies. The high security at the
Mogadishu GPO limits free public access to the letter boxes and may explain the low
uptake of the service. The letter boxes are installed in an enclosed area that does not
allow customers, personal access to their mail.
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To improve the uptake of letter boxes, the Ministry is working with other Government
agencies and banks to ensure that new businesses have a postal address before they
are registered.
With support from UPU, some staff members were trained on mail processing at Djibouti
Post in 2014. Following this training, Somali Post commenced receipt of international
inbound letters and parcels effective February 2014 via Djibouti Posts.
There has been significant growth in inbound e-commerce parcels since 2014. The
leading source of inbound mail include Scandinavian countries, Switzerland, Germany,
Netherlands, China, Ethiopia and Ghana. However, it was not possible to determine the
mail volumes as no records were maintained for the period.
The official mail carriers are Air Djibouti and Juba airways. Other international passenger
flights to and from Mogadishu’s Adan Ade International Airport include Turkish Airlines,
Ethiopian Airlines and Kenya airways. Qatar airways is expected to commence services
to Mogadishu.
Somali Post maintains good relations with other Government agencies like Customs and
Police service. Currently, no duties or taxes are levied on inbound international parcels.
To enhance mail security, international inbound mail is screened at the airport using cargo
screening equipment. However, the mail van ferrying the mail from the airport is not
secured. This poses a potential risk to mail security. Discussions are underway to
establish a fully-fledged mail processing facility at Mogadishu’s Adan Ade International
Airport.
Deliveries are made to Government offices and major customers. Whereas the country’s
security situation has improved, it is not possible to deliver mail to foreign embassies due
to heightened security situation. The rest of mail is delivered across the GPO counters
after clients are notified by telephone. Due to lack of addressing system, there is a lot of
undeliverable blind mail accumulating at the GPO.
Major towns across the country are accessible by road and through several local and
regional airlines. Due to lack of postal outlets in other towns, postal services are limited
to Mogadishu. There are no provisions for street letter posting and this may not be feasible
in the current state of heightened security situation.
The Ministry is determined to grow its inbound e-commerce packages and commence
international out bound mail services by end of 2019. In this regard, it has high
expectations from UPU and the international community.
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The recognised brand of courier firms operating in Mogadishu are Aramex and DHL.
There exist other firms that operate local and international courier and parcel services.
Due to lack of a licensing framework, there was no official record of these operators nor
their business volumes.
Somali Post is very keen to offer international money transfer services to serve the large
diaspora population which remit about US $1.4 billion annually. The absence of
internationally accepted formal banking system coupled with the international ban on
hawala money transfer system portends tremendous great opportunity for Somali Post.
International money transfer services to Somalia were affected since 2014 by worldwide
efforts to combat funding of illicit activities through untraceable recipients.
Postal financial products like IFS can easily fulfil this demand because of its ability to
provide Know Your Customer (KYC) information and traceability of funds. As a quick win,
Somali Post, due to lack of its own outlets, can use nationally established hawala firms
as agents to deliver the service at a fee.
Recommendations
Secure the mail van to deter unauthorised access to mail in transit.
Review installation of letter boxes at Mogadishu GPO to improve customer
accessibility.
Maintain proper record of inbound international mail and parcels. To assist in planning,
follow up with Djibouti Post on mail statistics since 2014.
Sign service level agreements with official air mail carriers to enhance accountability.
Maintain relations with Customs and Police as this will be critical in mail services.
Develop a suitable addressing system to enable delivery of mail to clients.
Develop a strategic plan to guide in the restoration of postal services.
Determine requirement for operational tools and equipment, establish budgetary
provision and procure.
Development of operational policies and procedures to guide staff in service delivery.
Develop marketing plan to guide in corporate branding and business development.
Develop plan to exploit the opportunity for international money transfer services using
IFS.
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4. Requirement for reconstruction
In the reconstruction of Somali Post lies a great opportunity to establish a modern
infrastructure devoid of historical legacies. The magnitude of the reconstruction is
enormous and that will require development of numerous policies, procedures and
undertaking of various tasks. These can be achieved if they are divided into small projects
to be implemented over a considerable period of time. The following are the key
requirements for the reconstruction of Somali Post.
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4.3 Legal and regulatory framework
There is need to establish postal legislation to enforce provision of universal service which
guarantees access to basic, quality and affordable postal services on a sustained basis.
The regulations anticipate establishing the Designated Operator and provide for private
sector participation in the industry.
The regulations will guide the postal industry in Somalia by providing a level playing field
for all players while ensuring the Designated Operator management independence and
autonomy. The regulations will define the functions of the National Communication
Authority in relation to postal services, make provisions for matters relating to postal
services, offences relating thereto, licensing and enforcement.
The Ministry should enact regulations to establish Somali Post as the Designated
Operator and regulate the postal industry in Somalia. Amendments of the National
Communications Act will be inevitable to define the role of the National Communication
Authority in regulating the postal industry.
To identify educational and skills requirement for the staff, it is essential to prepare job
descriptions and scheme of service. The latter will specify individual staff development
requirements and their respective career paths.
A recruitment exercise will be necessary to fill the identified job positions. This should be
followed by a well-planned training exercise starting with priority business areas identified
under the strategic plan. The initial training should essentially focus on management and
postal operations.
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4.5 Strategic plan
Somali Post lacks a strategic plan to provide a blueprint in its reconstruction efforts. The
plan would have indicated the vision, mission, objectives and strategies required to
achieve them.
Somali Post top management should develop a short-medium term strategic plan to guide
the organisation in its formative years.
Somali Post to develop a marketing plan and product and services that will establish it as
a market leader.
Somali Post should design its network based on priorities identified in its strategic plan.
Somali Post should use the existing postcodes to commence postal services. It could
consider other technologies to undertake physical mail delivery when the security
situation allows.
Somali Post should determine the post office to be renovated, prepare office layouts and
ensure efficient procurement of credible contractors to undertake timely construction and
refurbishment of post offices.
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4.10 Postal automation
The lack of postal infrastructure offers Somalia an opportunity to tap into modern postal
automation technologies to deliver a wide range of products and services. Technology
can be expensive, but the benefits far outweigh the costs.
Somalia should consider use of technologies available from UPU namely IFS and IPS for
financial and mail businesses respectively.
Somalia should establish from UPU their status in this regard. Where there is money due
to Somali Post, it should be sought and used as seed capital. On the contrary, where it
owes other administrations, it should seek waiver as part of their support in the
reconstruction efforts.
Somali Post should develop postal operations procedures that will guide its staff in
delivery of standard service across its branch network.
Somali Post will have to design and print postage stamps as a key revenue source.
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4.15 Mail routing
Somali Post receives inbound international mail via Djibouti but does not send local or
international mail. Thus, local and international mail routing has not been designed.
Somalia currently transmits its international mail via Djibouti.
There were plans to use Kenya given the high frequency and varied choice of international
flights. However, it is noteworthy that relations between the countries has been frosty in
the past few months. As such, it is advisable to shelve these plans for now. Alternative
countries like Turkey which has five weekly flights into Mogadishu may be considered.
It will be essential to develop mail routing plans before commencement of domestic and
international mail services.
Somali Post will have to develop and execute mail conveyance agreements with its road,
air and sea mail carriers.
The heightened security in Somalia calls for deliberate effort to strengthen postal security.
This calls for collaboration with Somali national police service, anti-narcotics agencies,
wildlife protection and customs agencies.
It is important that Somali Posts establishes a Posts/Customs contact committee that will
address all matters pertaining to international mail.
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services it intend to introduce. It will further develop plans to undertake service quality
checks to establish inconsistencies against set standards.
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5. Reconstruction plan for Somali Post
The reconstruction of Somali Post is a major undertaking that requires Government
commitment and support. The availability of funds will no doubt dictate the pace and
quality of reconstruction.
The plan herein has been laid out in a sequential manner to fast track the program. Some
of the activities are anticipated to run concurrently and can commence as soon as
possible.
The responsibility for undertaking the activities lies with Somali Post. The plan will lay the
foundation for a robust postal system and it is anticipated that a fully functional postal
entity will be established within two years.
2. Sector policy 1. Prepare postal sector policy to provide guiding principles and
framework for postal services.
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No. Item Recommended action
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6. Estimate budget for reconstruction
The 2012 reconstruction plan was ambitious and provided for reconstruction of 1,650 post
offices at an estimated budget of US $24 million. Of this amount, 82% was earmarked for
capital expenses while 18% was for operational costs for the first one year.
It is recommended that the estimate reconstruction budget be developed in line with the
strategic plan, once the plan has been developed.
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7. Work plan for counterpart
The following tasks are to be undertaken by the counterpart at the end of the mission.
4. Initiate discussion to identify suitable site for setting up mailing As soon as possible.
unit at Mogadishu’s International Airport to using anticipated
UPU DRM fund.
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8. Acknowledgement
I take this opportunity to thank UPU for giving me an opportunity to undertake this
important mission to assist in reviving postal services in Somalia.
I acknowledge the invaluable support accorded to me by Hon. Eng. Abdi Ashur Hassan,
the Minister for Post, Telecommunication and Technology and Hon. Abdullahi Bile Noor,
the State Minister for Posts.
Many thanks to my project counterpart Mr. Ahmed Ugas, for his unwavering support and
enthusiasm to undertake this mission.
I appreciate the cooperation and support accorded to me by the entire Somali team led
by the Mr. Abdulaziz Duwane, the Director General at the MPT&T.
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