East African Community member states are seeking to harmonise courier and postal service operations in order to ease the movement of parcels and cargo around the region.

Among the areas targeted for harmonisation are electronic transactions and licensing, and regulations for regional postal and courier operations.

The strategy will include an assessment of the status of the postal sector in partner states, policies, laws and regulations for the sector, establishment of effective, efficient, and sustainable postal markets and the development of a modern postal infrastructure.

A survey commissioned by the EAC to guide in the development of the strategy is complete.

“The baseline survey for the EAC postal sector has been concluded, and a meeting to consider the report of the survey is scheduled for May,” said Philip Wambugu, the EAC Secretariat director of infrastructure.

The committee spearheading the development of the strategy comprises postmasters-general, regulators, technical ministries and the East African Communications Organisation (EACO). The committee was established in 2013 to advise the EAC Council of Ministers on postal development in the region.

“We will involve the private sector to see how well we can develop the strategy,” added Mr Wambugu.

A courier service provider, for example, will only require one licence to operate across the region once the harmonised regulations are in place. The current requirement is to register in each of the member states for the domestic, regional and international categories. Charges vary in each country depending on duration and category.

In Kenya, the initial licence fee for domestic postal and courier operations is Ksh30,000 ($329) for one year. Tanzania charges Tsh3 million ($1,612) for three years. In Uganda, the charges are $1,000 for one year. In Rwanda, there are no fees charged. However, the Rwanda Utilities Regulatory Authority has proposed to start in April with annual fees of $3,500 for a domestic licence.

For courier companies registered in Tanzania, a regional licence costs Tsh5 million ($2,688) for three years. Kenya charges Ksh50,000 ($549) for a regional licence for one year; Uganda charges $5,000 for the same period, and Rwanda has proposed an initial fee of $2,500. International couriers pay Tsh15 million ($8,064) for an initial fee for four years in Tanzania, Kenya charges Ksh200,000 ($2,197) for one year, and Uganda $5,000 per year. Rwanda has proposed $10,000 a year.

“Regional licensing could expand the numbers of quality service providers. The high fees being charged by private couriers may be related to the issues of insecurity and the high insurance premiums for carriage of parcels among other things,” said Mr Wambugu.

Experts said harmonisation of the sector will attract new investments as the cost of doing business will come down.

“If a courier service provider is registered in Uganda, they have a right to operate in Kenya, Rwanda, Tanzania and Burundi using the domestic licence. Member states will come up with a way of sharing the revenue,” said Andrew Luzze, the executive director of the East African Business Council.

“Harmonisation of the licensing fees will be automatic, as any country charging higher than the others will lose out to its competitors,” he added.

Source: The East African

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.