Even in the face of difficult economic conditions and the general decline in traditional mail volumes, Botswana Post is confident it will reach P500 million mark in revenue very soon. The organisation chairman, Polokoetsile Motau wrote in the Botswana Post latest annual report for the year 2017 that sales revenue for the company has grown to an all-time high to P457.7 million, saying he is confident that in the near future they will be able to reach the P500 million mark. Over the year total assets for Botswana Post grew by 9.9 percent to P538.6 million. Motau said though the company made a loss of P12.9 million during the 2016/2017 financial year, it is important to appreciate that the organisation is quickly getting out of the loss making position. He gave an example that in the two financial years, 2015/2016 and 2016/17 since the operational Efficiency Execution Plan was implemented, losses have significantly diminished with the current year reducing by 51.9 percent. Controllable costs for the period are said to have gone down by 7.9 percent while comprehensive income improved due to revaluation of assets to P30.8 million. In a bid to diversify product range and drive revenues in previous years, they may have taken a handful of extra agency services that have not created a lot of value for the company, given that they cost the company to provide. “In the near future, we will be revisiting these products and re-evaluating them in light of their ultimate contribution to our bottom line,” said Motau, adding that moving into the next financial year the emphasis would be on efficiency. Motau says the company’s cost-to-income ratio is still too high and this means that Botswana Post will be exploring relationships and opportunities that do not have such a heavy impact on cost of sales.
The company has a new strategy in place which covers the period from this year until 2020 which Motau says is aligned with that of the Ministry of Transport and Communications. The strategy is also said to be aligned to the Istanbul World Postal Strategy for 2017 – 2020 as defined by the Universal Postal Union (UPU) Congress of September 2016 which Botswana Post was part of. Motau said besides the usual deliberations and engagements about how postal services can be made better, the UPU develops a consensus document which is designed to bring all postal operators around the world on board in terms of how they should be carrying their mandates. He added that they should start thinking strategically in terms of where new revenue may come from. “In the near future, major growth opportunities for Botswana Post will be realised through regional diversification. This means creating revenue sources beyond our borders through the provision of services like warehousing, logistics and transportation and money transfer,” he said. In other developments, the envisaged merging of Botswana Post with Botswana Couriers & Logistics and Botswana Savings Bank (BSB) is said to be far from over as conversations between the affected entities and the relevant stakeholders is reportedly ongoing. Only after the talks are finalised and a comprehensive plan is put in place, would a comment be put forward on what a possible merger would mean for these entities, said Motau.