Postal sector collapses

Zimbabwe’s postal and courier  services sector is on the verge of collapse after experiencing a  massive  decline in volumes handled in the past year, due mainly to the growing  use of e-commerce in the economy.

In the third quarter of the year, for instance, volumes dropped 25  percent to 1,002 million articles compared to the second quarter as  e-commerce takes root in the country.

All categories from domestic postal letters, domestic courier to  international incoming and outgoing parcels registered declined in  volume in the third quarter.

The sector’s regulator, the Postal and Telecommunications Regulatory  Authority of Zimbabwe (Potraz) says this is because of the growing  substitution  of most of the services by electronic means, from letters to physical  shopping.

“Postal and courier volumes have been consistently declining over the  past year. The decline in postal volumes, in particular domestic, is  attributable to e-substitution,” it said.

But Potraz says it also sees a silver lining for the postal and courier  sector  in the expanding e-commerce business in the country, at least in the  long run.

While e-commerce is the process of buying and selling goods  electronically over  the internet, it largely relies on postal and courier services for the  movement  of goods. — New Ziana.

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