The Uganda Communications Commission (UCC) has asked Parliament to consider a financial bailout for Posta Uganda, as the national postal service grapples with an expired license and growing debts.
While speaking to the Parliamentary Ad hoc Committee looking into Posta Uganda’s money problems on November 18, 2024, Abudu Sallam Waiswa, the head of Legal Affairs at UCC, revealed that the company’s mail and deposit license has been expired since 2021. At the time, Posta Uganda already had a debt of UGX 1.7 billion in unpaid license fees, a debt that has accumulated since 2017.
Waiswa expressed concern over Posta Uganda’s operational status, stating, “We have told them many times to renew their license. With all these challenges, they really can’t keep operating without it.” He highlighted how important a national postal service is for meeting Uganda’s commitments under the Universal Postal Union Convention.
Even with the expired license and large debts. Including UGX 5.5 billion owed to Uganda Telecom and UGX 1.4 billion in Value Added Tax to the Uganda Revenue Authority, UCC has not moved to shut down Posta Uganda. Waiswa mentioned that closing it down would hinder Uganda’s ability to present a designated postal operator to the Universal Postal Union, which might cause problems on the international stage.
Read Also: UCC to Shutdown Media Houses Broadcasting Inappropriate Content
UCC officials know that if Posta Uganda can’t fix its financial issues, they might have to suggest that a private company take over as the national postal operator, similar to what happened in Algeria, Egypt, and Morocco, which change could give more power to international companies like DHL, potentially upsetting the local postal services.
Thembo Nyombi, the Executive Director of UCC, asked the government to collaborate with UCC to secure Posta Uganda as a key national asset.
“Posta Uganda needs significant financial help and smart planning to make the most of opportunities in the logistics field,” he said.
He also highlighted how vital it is to have a national postal operator, saying that besides the business aspect, it plays a major role in how we are seen on the global stage.
