1. W T I a d v i s o r s SADC Postal & Courier Services Sector Forum Supported by the SADC/GIZ Project on Trade in Services P OSTAL R EFORM, T RADE IN S ERVICES AND E FFECTIVE A CCESS : C ONSIDERING P OLICY OPTIONS FOR M UTUAL R EINFORCEMENT S ESSION 3: S TATUS Q UO & O UTLOOK IN SADC M EMBER S TATES Swakopmund, 19 April 2013 Hannes Schloemann, Director, WTI Advisors hannes.schloemann@wtiadvisors.com

2. W T I a d v i s o r s 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. W T I a d v i s o r s 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. W T I a d v i s o r s 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. W T I a d v i s o r s 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. W T I a d v i s o r s 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. W T I a d v i s o r s 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. W T I a d v i s o r s 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. 9 Discussion Hannes.Schloemann@wtiadvisors.com