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Stakeholders reveal what ails Tanzania’s courier sector, suggest solutions
What you need to know:
- Reacting to new data on courier services, stakeholders noted that South African Airways' suspension of flights adversely impacted foreign cargo
Dar es Salaam. Postal and courier service stakeholders have attributed a decline in posted and delivered items, both domestically and internationally in the past five years to reduced airline services, the presence of middlemen, and unlicensed companies.
Reacting to new data on courier services, stakeholders noted that South African Airways' suspension of flights adversely impacted foreign cargo, while the use of bodabodas has led to a reduction in domestic deliveries, as they often operate through unofficial channels.
The airline, which had declared bankruptcy, recently announced plans to relaunch flights to Dar es Salaam this month.
Data from the Tanzania Communications Regulatory Authority (TCRA) for the third quarter (July to September) shows that in 2019, the number of items posted domestically was 9,280,229, dropping to 2,123,212 last year—a decrease of 77.1 percent.
Similarly, international postings during the same period fell from 2,873,122 to 979,625, marking a 66 percent decline.
Stakeholders noted that while the sub-sector is growing, it continues to face challenges from unlicensed companies, which has contributed to a reduction in posted items.
They emphasised the need for government intervention to address these issues.
Speaking to The Citizen, TCRA Postal Services Manager, Ms Cecilia Mkoba, said most cargo from Southern African Development Community (SADC) countries previously came through South Africa.
She added that courier companies are currently working to establish contracts with alternative airlines.
"In the coming years, we expect this sub-sector of communication to become much more significant, with a focus on valuing the customer by delivering packages directly to them," she said.
She further explained that as more supermarkets and stores turn to e-commerce, demand for delivery services will likely rise, transforming the delivery landscape.
She also hinted at the possibility of drones becoming a common mode of delivery, envisaging an era where people increasingly engage in income-generating activities through digital platforms.
Ms Mkoba dismissed the perception that postal services are outdated, noting that orders from e-commerce giants like eBay, Amazon, and Alibaba are delivered through postal services, including the Tanzania Postal Corporation, DHL, UPS, FedEx, Aramex, and Next Couriers.
“This sub-sector would lose its relevance if e-commerce could send cargo via computer, which is not possible,” she noted.
Tanzania’s residential addresses and postcodes allow many citizens to receive deliveries directly, facilitating contact for postal and courier service providers.
“Customers can simply provide their street name, house number, and postcode when ordering online,” she noted.
Geamos Couriers managing director, Mr Gerald Mosha, highlighted several challenges facing the courier sector, including middlemen who transport parcels at lower rates, which undercuts licensed operators.
He added that unregistered couriers are disrupting the industry just as it begins to recover from the Covid-19 pandemic, as these unlicensed operators offer lower rates, resulting in unfair competition.
“We see a positive trend in this business, but we urge the TCRA to establish a mechanism to address unregistered companies and, if possible, set indicative pricing for cargo transport to ensure fair competition; otherwise, some businesses may fail,” he said.
Sharing similar views, Tanzania Postal Corporation (TPC) Public Relations Manager, Mr Elia Madulesi, noted that while technology has impacted the mail sector, courier services have begun to gain momentum post-COVID-19.
However, he pointed to data capture challenges due to the high number of companies operating informally.
“The postal law clearly states that parcels weighing less than 2 kilos should be sent by post, yet many such items are transported by buses. There is a need for the TCRA to investigate this to ensure licensed operators adhere to established procedures,” he said.
Next Courier Company Chairman, Mr Aloys Bahebe, added that the prevalence of bodabodas in the domestic market is undermining competition, as people prefer their cheaper services.
He also noted that the suspension of South African flights has affected their business; previously, customers received parcels within two days, but now shipments transit through Nairobi, increasing costs.
“We are grateful to Air Tanzania Limited for announcing the resumption of flights to Johannesburg, as this will significantly boost cargo volumes from there and other countries,” he concluded.
