SADC Postal & Courier Services Sector Forum Supported by the SADC/GIZ Project on Trade in Services

1. SADC Postal & Courier Services Sector ForumSupported by the SADC/GIZ Project on Trade in Services Postal Reform, Trade in Services and Effective Access: Considering Policy options for Mutual Reinforcement Session 3: Status Quo & Outlook in SADC Member States Swakopmund, 19 April 2013 Hannes Schloemann, Director, WTI Advisors hannes.schloemann@wtiadvisors.com

2. Postal Reforms: Policies, Legislation etc. • Multiple reform efforts in SADC Members over the past decade + • New legislative frameworks established (e.g. Angola 2001, Mauritius 2002, Lesotho 2012) or under way (e.g. Botswana, Swaziland) • Some explicit postal/communication policies (e.g. Namibia 2009) • Mostly independent regulator created or creation imminent (e.g. Botswana, Swaziland), but roles and strengths vary • Telecoms and postal operators mostly separated

3. Reforming & Strengthening the National Post • In most Member States corporatization of National Post completed or under way • Some under general company laws, some as special “body corporate” entities • In several Member States infrastructural upgrade programmes for National Post undertaken • But significant work remains to be done • Operators often required to act as commercial entities, but not always fully empowered (e.g. restrictions on selling assets), political interferences remain • Addressing programmes significant challenge

4. Universal Service, Universal Access and Financing Mechanisms in SADC Members • Most postal laws contain explicit obligation for the DOP (sometimes all operators – Mauritius) to provide US • Universal service • usually defined in general terms mirroring the UPU definition • sometimes with add’l language emphasizing interests (e.g. Angola: population, economy, social) • some precise enumerations of USO coverage (e.g. Botswana (bill)) • Financing mechanisms: • All SADC Members provide for some postal monopoly (reserved services – see below) • Some foresee Universal Service/Access Fund (e.g. South Africa, Zimbabwe), but some not operationalized (e.g. DRC, Mauritius) • Extent of use of subsidies for DPO often not clear • Some self-financing (e.g. Mauritius)

5. Reserved Services: Present situation & trends (I) • Most SADC Members maintain reserved services space • Sometimes clearly, sometimes not clearly defined, some apparently assumed (Mauritius?) • Usually reserved services positively enumerated, sometimes allowed services carved out (e.g. Angola) • Criteria vary – mostly weight limits, also price (measured against postal tariff), delivery to PO Box (as opposed to address), value-added • BUT: Enforcement often weak

6. Reserved Services: Present situation & trends (II) • Services covered vary • Always letters (with weight, sometimes add’l criteria, e.g. delivery to PO Box) • Mostly parcels (with weight, sometimes add’l criteria, e.g. delivery to PO Box) • Often stamps (sometimes limited to stamps bearing state name) • Sometimes other (e.g. mail box rental, roadside letter boxes) • Coverage & extent varies widely, e.g. (letters) • Botswana, Namibia: 100g • Malawi: 350g • Angola: 500g • South Africa, Zambia: 1000g

7. Competition & Trade in Non/Reserved (and Reserved) Services:Status quo & Trends • Competition in non-reserved services appears strong and healthy throughout SADC, often reaching into reserved services ( weak enforcement) • All major int’l companies present throughout SADC • Several regional players (some as agents for multinationals, some on their own) • Few market access obstacles apart from postal monopoly (some restrictions on foreign ownership, e.g. Zimbabwe) • Few instances of discrimination (e.g. licensing fees) • Recent trend: cooperation between private operators and DPOs (retail partnerships, express cooperation, etc.) – interconnection

8. Regulatory Challenges • In principle all classical regulatory issues present, e.g. • Effective enforcement of USO • Enforcement of reserved services • Separate accounting • Fair licensing (currently some DPOs are, some are not subject to licensing) and licensing fee system • Interconnection etc. • Some perhaps less prevalent, e.g. • Abuse of dominance by DPO • Cross-subsidization from reserved to non-reserved services (although some laws/polices explicitly address the issue) • Arguably overall challenge: Attention (regulators/policy makers focus on telecoms & broadcasting, postal often afterthought)

9. Discussion Hannes.Schloemann@wtiadvisors.com 9