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Interim Report Interim Report Submitted to African Union Commission Consultancy services on elaboration of a model and guidelines on Universal Postal Service (UPS) for Africa With support of European Union Procurement No.: 32/IED/11 Date of submission 25 February 2012 Table of Contents 1. ACRONYMS ................................................................................................................................... 4 2. Background to Interim Report ......................................................................................................... 6 2.1. Terms of Reference for the Study ............................................................................................ 6 2.1.1. African Union rationale for postal sector development ................................................... 6 2.1.2. Harmonization Study Postal Sector African Union .......................................................... 7 2.1.3. Harmonization Decision EX.CL/435(XIII) ...................................................................... 8 2.2. Structure of Interim report ...................................................................................................... 10 3. Diagnostics ..................................................................................................................................... 11 3.1. Definition, purpose and scope of UPS (Beijing 1999) ........................................................... 11 3.2. Analysis of the current situation in Africa ............................................................................. 13 3.2.1. Status of the provision of UPS in Africa ........................................................................ 13 3.2.2. Key ratios postal services and infrastructure development ............................................ 14 3.2.3. Diversification of services .............................................................................................. 24 3.3. Business area Mail with DPO’s in Africa .............................................................................. 26 3.3.1. Main challenges for Post: cross-border markets under pressure .................................... 27 3.4. Business area Parcels and Logistics with DPO’s in Africa .................................................... 30 3.4.1. From single parcel items to supply-chain parcels and Logistic Services ....................... 32 3.5. Business area Financial Services with DPO’s in Africa ........................................................ 32 3.5.1. Postal Money Orders ...................................................................................................... 34 3.5.2. Financial Inclusion and development of Postal Financial Services ............................... 35 3.6. Business area Retail & Agency Services with DPO’s in Africa ............................................ 36 3.7. Development of ICT based postal services ............................................................................ 37 3.7.1. ICT and postal indicators ................................................................................................ 37 3.7.2. Development of e-postal services in Africa ................................................................... 38 3.8. Typology of the African countries in UPS matters ................................................................ 40 3.8.1. Integrated Postal Development Plans (IPDP) ................................................................. 40 3.8.2. Analysis UPU/PAPU for Regional Development Plan for Africa ................................. 42 3.8.3. Situation analysis by sector stakeholders for the region and per country ...................... 46 3.8.4. Typology countries for provision of Universal Postal Service ...................................... 47 3.8.5. Conclusions on progress postal reform and UPS provision: .......................................... 49 3.9. SWOT of the Strategies set up so far ..................................................................................... 50 4. Progress made ................................................................................................................................. 51 4.1. Response questionnaire AUC ................................................................................................. 51 4.2. Key characteristics UPS ......................................................................................................... 54 4.3. Conditions of access to universal postal service by the majority of people in Africa ............ 54 2 Interim Report AUC February 2012 Hans Kok Business Consult BV Netherlands 4.4. Specific challenges and prospects provision of UPS in Africa .............................................. 55 4.5. Impact UPS on Postal Sector development and the economy ................................................ 56 4.5.1. Contribution to GDP ....................................................................................................... 56 4.5.2. Improving UPS within member States ........................................................................... 57 4.5.3. Improving UPS between member States ........................................................................ 57 5. Analysis of options in funding UPS ............................................................................................... 63 5.1. Financing universal service .................................................................................................... 63 5.1.1. Current financial situation AU Members ....................................................................... 63 5.1.2. Costing universal service ................................................................................................ 64 5.2. Financing options ................................................................................................................... 64 5.3. Financing universal service in Africa ..................................................................................... 70 5.4. Overview recommended options for funding UPS ................................................................ 71 6. Recommendations .......................................................................................................................... 73 6.1. Development Model of UPS for Africa .................................................................................. 73 6.2. Lessons learned from best practices UPS provision in Africa ............................................... 73 6.3. Proposals for sustainable provision UPS in Africa ................................................................ 75 7. Development of Guidelines of implementation ......................................................................... 77 7.1. Establish AUC Protocol on development of postal sector policies ........................................ 77 7.2. Develop integrated Communication and ICT policies ensuring universal access ................. 77 7.3. Integrate postal sector policy with policy financial inclusion ................................................ 79 7.4. Consideration market liberalisation AU ................................................................................. 79 7.4.1. Experience market liberalisation EU .............................................................................. 79 7.4.2. Alignment UPU/EU/AU postal sector policy on development of UPS ......................... 81 7.4.3. Funding of UPS in EU area ............................................................................................ 82 7.4.4. Review of UPS scope and definition .............................................................................. 82 7.5. Challenges for Market Liberalisation Africa ...................................................................... 82 8. Recommendations on funding UPS in Africa ............................................................................ 83 9. Overall Recommendations ............................................................................................................. 87 9.1. Develop Protocol on Harmonization for postal sector of AUC Member States .................... 87 9.2. Integrate postal sector in wider Communications and ICT sector policy .............................. 87 9.3. Integrate postal sector policy with policy Financial Inclusion ............................................... 88 9.4. Develop path towards market liberalisation for AU ............................................................... 88 10. Preliminary Action Plan ............................................................................................................. 89 11. References .............................................................................................................................. 90 3 Interim Report AUC February 2012 Hans Kok Business Consult BV Netherlands 1. ACRONYMS ABC Activity Based Costing AGDP ACTION GROUP FOR POSTAL DEVELOPMENT ATM Automated Teller Machine AU African Union AUC African Union Commission CCP Centre Cheques Postaux CEP Courier, Express and Parcels COMESA Common Market for Eastern and Southern Africa COPTAC Conference of Posts and Telecommunications of Central Africa CPAO Conférence des Postes de l’Afrique de l’ouest CRASA Communication Regulators’ Association of Southern Africa D+3 Day of delivery 3 days after posting D+5 Day of delivery 5 days after posting DG Director General DPO Designated Postal Operator DRC Democratic Republic of Congo EC European Commission
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