[kictanet] Posta Kenya should be acquired by Okhi.com & Sendy

[Ali Hussein]

Listers

Apologies for cross posting and forgive the long rambling post.

Provocative title for sure. I'm prompted to write this by an article in IDGconnect about the woes of eCommerce logistics in Africa. 

http://www.idgconnect.com/blog-abstract/10220/solving-african-shipping-ecommerce

One paragraph in the article struck me like lighting:-

'The lack of a national street address system in most nations has also made it difficult for eCommerce to flourish and it continues to be a major obstacle.'

Another states:-

SIG Africa is currently working with a startup that aims to ease the pain of domestic goods delivery. Sendy, which has been described as ‘Uber for motorcycles’, aims to use the many riders across Kenya to deliver goods for eCommerce players.
Sendy’s (http://www.sendyit.com) application is similar to Uber’s interface where you can order a delivery from your phone.
The potential of eCommerce in Kenya cannot be underestimated. Unofficial numbers out Jumia's sales at Kshs. 500 million a month.
Among these stories of Africans innovating to solve a major problem hampering eCommerce growth is this one about how the Communications Authority of Kenya is working to ensure a Dinosaur is woken up from its deep slumber. The online edition of the Daily Nation proclaims:-

Regulator’s new rules a shot in the arm for ailing Posta
In Summary
They require new postal and courier service providers applying for licences to adhere to conditions such as use of PCK’s vast national networks to interconnect to areas the couriers have no presence.
The arrangement will see Posta tap into Jumia’s online international and local markets that serve Morocco, Egypt, Kenya, Ivory Coast, Uganda and Nigeria. Jumia boasts double digit growth, month-over-month, which will be beneficial to PCK.
Entry of Huduma centres in 2013 was the government’s way of trying to increase competition in postal and courier services through attractive and fast services to the public.
What struck me in the article which I hope to God was misquoted is this:- Posta will now be guaranteed a piece of revenue from all firms in the sector. Firms that do not comply will have their licences revoked.

I have no problem with the Government retaining some form of Posta to ensure the rural areas still have a 'link to the outside world' since the Universal Access Fund is now more or less dead despite protestations to the contrary. By the way this is one particular case where I will be very happy to be proven wrong and a Naysayer. If this Fund works as it should Broadband connectivity should be ubiquitous in this country in the next 3-5 years.

Which brings me to the main thrust of my post today. 

That of Policy vis-a-vis Regulation. 

What comes first and who wags whose tail? 

1. Should the CA be protecting Posta as a National Heirloom or should we be nurturing New Generation Heirlooms? 

2. Should we have a clear ICT Policy and implement it regarding the nurturing of New Generation Heirlooms?

3. Should we, as part of this new policy be Grafting the New Okhis and Sendys into Posta with the hope of completely altering its DNA? (and this I confess is a big IF)

4. Are the days of so called 'Strategic Parastatals' gone the way of the Dinosaur? Or is there a case for retaining this vestige of a bygone era? I don't confess to know the answer but this is an issue that should be debated vigorously by Kenyans. 

OkHi is building the next generation address system for Kenya and beyond. This system will unlock commerce through enhanced logistics, save lives and improve access to finance, its website proclaims. Here's a story in the Financial Times:-

http://www.ft.com/cms/s/0/0ab7cf62-bcd7-11e4-9902-00144feab7de.html#axzz3l7GMqSOv

Sendy boldly procliams that they are an On-demand, door-to-door, package delivery services, 24/7. Let us sit in traffic for you.

This 'reverse acquisition' or grafting of smaller players into big ones to change and grow the parent company has been done before successfully. The only caveat is that Government has to literally move aside. 

This country also has successful case studies of removing a healthy promising child from the womb of an ailing mother and making it a Global Phenomenon. Yes, I'm talking about Safaricom. For those of you young enough not to recall or remember, Safaricom started life as part of the Kenya Posts & Telecommunications Corporation. The CA itself is a product of this Parastatal of a bygone era. And I must confess that despite issues the Regulator in many case has performed above average. 

Someone at the ICT Ministry has a date with Destiny and be recognized as the team that revived Posta Kenya and made it the DHL of Africa. 

Will you rise up to the challenge?
 
Ali Hussein
Hussein & Associates
+254 770 906375 / 0713 601113

Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
Blog: www.alyhussein.com

"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought".  ~ Albert Szent-Györgyi

Sent from my iPad
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