Posta Inks Ksh72 Million Deal To Boost E-commerce

The Postal Corporation of Kenya (PCK) has secured US$650,000 (KSh72 million) from TradeMark East Africa (TMEA) in a year-long agreement that is aimed at improving the Corporation’s digital services, to enable it effectively support e-commerce in the East African region.

The corporation, which is a primary handler and gatekeeper of parcels and small to medium-sized cargo for consignments crossing borders for both air and land freight, will benefit through enhanced internal digital capacities and improved collaboration with external, both regional and global actors, in the e-commerce space

Dan Kagwe, the Postmaster General and CEO of PCK said the partnership was “a historical moment for this institution, as TMEA becomes one of the partners that have shown confidence in PCK’s capacity to enhance ecommerce in the region.

“It is a great beginning that will open doors for Posta to work with diverse stakeholders and access the potential that exists in the East African region,” said Mr Kagwe.

“Notably, the country and region at large have over time experienced a rapid shift from traditional mail, money order and stamp sales to the growth of e-commerce and packages below 10kgs that are relatable to SMEs.”  

Anataria Uwamariya, the Director Business Competitiveness at TMEA said Posta is an ideal partner to enhance the logistical nature of their interventions to enhance e-commerce ecosystems across the region, especially through its last-mile delivery capabilities.

“It is our intention that this partnership will enhance the co-creation and engagement of diverse private and public sector stakeholders in the region,” said Ms Uwamariya.

The lucrative deal funded under the improved business competitiveness strategic objective of TMEA’s Export Capability programme, seeks to facilitate increased trade capacity of targeted businesses through increased use of technology to boost regional trade and linking businesses to international markets.

“Against the backdrop of the Covid-19 pandemic, PCK is keen to tap into the growth of small parcels and e-commerce items within the postal systems of Kenya from an average 1800 items every four days in 2018 to 2300 per day in 2021,” said PCK in a statement.

As part of the partnership, the corporation intends to increase its capacity to process 10,000 packages daily to provide an efficient logistics and distribution platform for e-commerce entrepreneurs and customers.

Even as Africa’s e-commerce sector becomes more vibrant, and the need for traders to participate in remote trading and use technology for business has grown exponentially, making Posta keen to leverage on this dynamic space through its partnership with TMEA.

TMEA plans to implement the Supporting E-commerce Ecosystem Development (SEED) programme that will support interventions focused on boosting cross-border e-commerce through improved efficiency within the ecosystem, which Posta has been privileged to benefit from.

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