Posta Uganda to Launch Financial Services

Friday, July 31, 2015

Posta Uganda will launch financial services to use its country wide postal networks to promote financial inclusion especially the unbanked rural communities.

Financial inclusion is the provision of basic financial services to people without access to such services.

These services include money transfers, savings, payments, insurance and credit.

James Arinaitwe, managing director Posta Uganda said that the post office was not only for posting and receiving letters but their license allows them to provide financial services.

This was during the opening of Universal Postal Union and Pan African Postal Union conference held at Silver Springs Hotel, Kampala.

It was organised by the Uganda Communications Commission under the theme ’Financial services and financial inclusion’.

“We want to launch the financial services in January 2016. We shall start like a microfinance institution and grow our services to become a micro-deposit taking institution. We shall partner with existing players in the banking sector such as Post Bank and any bank with networks,” Arinaitwe said.

Arinaitwe said Posta Uganda has 50 branches it manages directly countrywide and 140 franchise agencies.

He said the financial services will improve the business sustainability, survival, profitability of the postal organisation. He said their franchises that were getting low businesses might improve and their staff with little work will get more work.

Arinaitwe explained that Post Bank Uganda, was a different entity from Posta Uganda. He said the two were created as separate entities after the split off in 1998 from the Uganda Post and Telecommunications Corporation.

Source: New Vision (link opens in a new window)

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financial inclusion, financial services, microfinance