Date post: | 17-Jul-2015 |
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LOGO
TANZANIA Financial Inclusion through Post
Office Outreach
www.posta.co.tz
Presented by Deos Khamisi Mndeme
Postmaster General & CEO
Tanzania Posts Corporation
Contents
Post Office in Financial Inclusion
Post Office Network
Financial Inclusion in Tanzania
About Tanzania
Strategy
The Tanzania Posts Corporation
Challenges
1. Introduction About Tanzania
• Location - East Africa along the Indian Ocean.
•Formation – A union of two sovereign states (Mainland and Zanzibar Islands).
•Area – The surface area is 945,203 square kilometers.
•Landscape – The Kilimanjaro, Ngorongoro, Serengeti and many others.
• Population – 47.4 million people of which 70% are estimated to be in rural and 30% are in urban areas.
•Economy – Agriculture accounts for about 40% of GDP, provides 85% of exports, and employs about 80% of the work force.
•Demographics – Percentage of young population between age of 15-35 years is 34.7%.
Source: National Bureau of Statistics (2012 Census)
Financial Inclusion in Tanzania
Financial Inclusion in Tanzania is still low
Only 17 % of adult population (about 3.7 million) had
access to bank accounts (2012)
Mobile Money:
31.8 million subscribers
11 million active users (48%)
2. Financial Inclusion in Tanzania
Institutional Arrangement:
Ministry of Finance and Planning steers implementation of national financial inclusion policy while the Central Bank of Tanzania (BOT) regulates financial sector.
The Tanzania Communications Regulatory Authority (TCRA) regulates Communication Services which includes Postal services, Telecommunication, Broadcasting and ICT services.
The Tanzania Financial Inclusion framework targets to enable 50 percent of adults to access formal financial services by 2016.
Adult Population with Formal Bank Accounts
Status in Tanzania
50% - Target
17% or 22% including SACCOS
12%
9%
2016
2012
2009
2006
Source: Tanzania Financial Inclusion Framework (A Public – Private Stakeholders Initiatives 2014-2016 )
3. The Tanzania Posts Corporation
Tanzania Posts Corporation (TPC) is the designated Public Postal Operator in the United Republic of Tanzania
Owned by the Government (100%)
Under the Ministry of Communications, Science and Technology, being regulated by the Tanzania Communications Regulatory Authority (TCRA).
Take note that the Postal Bank is an independent parastatal but it operates through the Post Office outlets under a commercial agency agreement.
4. Post Office Network
Office Number
Departmental Post
Offices manned by
permanent staff
164
Community
Information Centres
and Internet Cafes
37
Franchised Post
Offices
83
Sub Post Offices 65
Mail Delivery
Centres
36
Stamp Vendors 2,558
Post Office Network Continues..
Departmental District Post Office
Franchised Post Offices Stamp Vendor
Departmental Regional Post office
Sub Post Office
Post Office Network continues…
Office Type Service Offered
Departmental Post Office (DPO) manned by permanent staff
• Mails and Logistics, • EMS Courier and Express, • Financial and Agency Services
Community Information Centres and Internet Cafes
• ICT application services, • Photocopy and Secretarial services • sale of stationery, office and School equipments.
Franchised Post Office (FPO)
• Mails and Logistics, • EMS Courier and Express, • Collection of national examination fees with sale and payment of postal orders can be done on specific arrangements
Mail Delivery Centres (MDC)
• Mails and Logistics, • EMS Courier and Express, • Collection of national examination fees on specific arrangements
Sub Post Offices (SPO)
• Basic Mails and Logistics Services • Sale of postage stamps and postal stationary • Sale and payment of Postal orders
Stamp Vendors (SV)
• Sale of postage stamps and postal stationary • Receipt and delivery of ordinary mails on specific arrangements
Services Offered at Post Office:
Post Office Network continue…
Post Office network compared with Bank and Mobile Money outlets: Institution
Total Network size
Tanzania Posts
Corporation (TPC)
348 –comprising
DPOs,
FPOs, MDCs
& SPOs
Tanzania Postal Bank
(TPB)
27 + 115 post
offices
CRDB- Bank
73
National Microfinance
Bank (NMB)
140
National Bank of
Commerce (NBC)
53
Mobile Phone Companies
17,000
Source: Interviews during the mission and bank websites
Tanzania Banking Survey by Serengeti Advisers 2012
TPC is present in all districts and some wards through 348 post office outlets. The postal network although larger is not enough to compete in mobile financial services. If post office utilizes effectively the mobile technology it will reach out the unbanked population.
Source ESRF Discussion Paper field data 2009
%
5. Post Office in Financial Inclusion
Financial Services Posta Cash -Electronic
Money Order
Money Fax
Post Giro (Dividends
and Pensions)
Express Money Order
Postal Orders
International Money
Orders (IFS)
Bureau de Change
Financial and
Agency Services
Agency Services Agency Banking
(TPB & CRDB)
Money Transfer (Western Union, Money Gram,
Mobile money)
Sales of Electricity Token
Phone Cards/Recharge
vouchers
Insurance Agency (Premium
Collections)
Collection of National
Examination Fees
The post office in Tanzania plays a role in financial Inclusion by providing the above financial services. In 2013, about 18,000 customers were serviced in financial services and 300,000 in agency service this is an increase of 80% and 21 % respectively compared to previous fiscal year(2012).
6. Challenges
Fundamental challenges hindering the role of Post office in Tanzania in the extension of Financial Inclusion are: Lack of full information about clients so as to design appropriate products (know your customers – KYC) Problem of liquidity(availability of adequate cash) in Post office outlets in the rural areas.
Financially viability of post office outlets in rural areas
Underdeveloped public infrastructure e.g. lack of electricity, ICT connectivity etc. Lack of suitable business model and modern technologies which suit the needs of different segments of consumers. Safety and security in the financial services transactions e.g. safeguard of cash, cyber related crimes etc.
7. Strategy (Swift Move into mobile Technologies)
E-Payments Carried Out with
Banking Partners
Mobile Payments – Mobile money
Transfer, mobile settlements
E-Government – Creating Access
bridging the gap to offer e-services
Under one stop centre (Post Office)
End to end
E-payment
solution
Leveraging on technology to develop new revenue streams, by linking the post office with mobile phone companies and banks to improve electronic money transfer and online payments.
Strategy Continues…
TPC strategy is to extend its network by partnering with mobile phone companies and banks or financial institutions. Through this collaboration post office outlets will be able to expand its outreach through retailers (Mobile phone agents).
Post Office
Outlets
Develop or Customize
Module to Integrate all
Players, Banks and
Mobile