ITS ROLE AND POTENTIAL

GhanaPost

March 5, 2015

Topics

AFRICAN POSTAL FINANCUAL SERVICES INITIATIVE1

Ghana Post: its role and potential

African Postal Financial Services Initiative

Role of Ghana Post

in Remittances

How can Ghana

Post become more

competitive

Questions

Role of Ghana Post in

Remittances

Presented by Ghana Post

The World Bank estimates 1,9 million Ghanaian living abroad

Ghanaian-born persons can be found in more than 33 countries around the world.

Inflows are estimated to be in excess of USD 1.5 billion in 2014

Main source countries are the United States (22 percent), United Kingdom (16 percent),

Nigeria (14 percent), Italy (8 percent) and Ivory Coast (8 percent).

As much as 28 percent of Ghanaians are recipients or senders of remittances.

Among those, the majority indicated sending with friends/family (55.7 percent) was their

preferred method, banks (25.1 percent,) other formal (22 percent) and informal (16.1 percent)

3

Ghana Remittance Market

GP is

authorised

to carry

out the

following

FS

activities:

To provide services for which money may be remitted

by means of money order, Postal Order, or otherwise.

To provide and undertake agency services on behalf of

the government and any other corporate body.

To provide information Communication Technology

Services.

To operate a Non-Banking Financial Services.

4

Ghana Post

The Financial Services Department commenced operations in 2002

to diversify its operations and add Financial Services to its portfolio.

The department started operation with a Domestic Remittance

Service, Instant Money Transfer (IMT) which was later replaced with

Cash Post.

Ghana Post provides International Money Transfer for international

MTOs as agents of financial institutions.

Ghana Post also provides Mobile Money Services as agents to MNOs

.

5

International

Remittances

Western Union & Moneygram (Agents

Agricultural Development Bank)As agent to Agricultural

Development Bank

Ria & Sigue As agent to Unibank Ghana

Limited

Transfast Money Transfer As agent to First Atlantic Bank

Samba International Money Transfer As agent to UT Bank Ltd

Domestic

Remittances

and Money

TRansfer

Cash Post Unit Domestic Remittances

Mobile Money Transfers Agents to Airtel. Coming soon:

MTN Mobile Money, Tigo Cash

LEAP (Livelihood Empowerment Against

Poverty)

6

Ghana Post Current Offerings

PRODUCT PARENT COMPANY AGENT IN GHANA NO. POSTAL

LOCATIONS

Western Union Western Union Int. Agric Dev. Bank 105

Moneygram Moneygram Int. Agric Dev. Bank 64

Ria & Sigue Euronet Worldwide uniBank Ghana Ltd. 25

Samba Samba Money Int. UT Bank 50

Transfast Transfast Money Transfer Int. First Atlantic Bank 40

Cash Post Ghana Post 185

Airtel Airtel Airtel Ghana 150

7

Ghana Post Remittance Services per GP Branch

CASH POST

Cash Post is Ghana Post’s domestic remittance service .

It started in December 2009 and currently operating in 185 locations nationwide.

Our target is to increase the number of outlets to 200 locations by the close of2015.

CHALLENGES

• Power outages.

• Cash management .

• Inadequate cash float levels for operations.

• Internet connectivity to Post Office locations.

• Inadequate logistics such as computers, printers, copiers and consumables and

vehicles for monitoring.

• Lack of publicity for the products due to inadequate funds.

8

PRODUCT 2011 2012 2013 2014

Western Union 1,161,610.00 1,376,917.00 1,500,928.00 1,937,048.20

Moneygram 130,621.80 238,590.60 343,362.90 698,299.40

Cash Post 628,309.00 1,320,201 1,601,566.00 1,733,381

The other four International Remittance services namely Ria, Sigue, Transfast and

Samba Money Transfers are new products that are yet to pick up. The performance

trends are therefore yet to be established.

9

Ghana Post provides agency services to Airtels Mobile Money transfer at 150

Ghana Post locations nationwide.

PRODUCT PERFORMANCE

MOBILE MONEY TRANSFERS

Total Commission Earned - Ghana Post - 1 May 2013 to 31 Aug 2014

Type of Transaction Commission Amount (GHS)

Cash-out 419.33

Cash-in 777.63

DSTV 52.06

Gotv 15.40

Airtime 14.19

Comm on Airtel Money Subscriber Reg. 45.00

Total 1,323.60

10

CHALLENGES WITH AIRTEL MOBILE MONEY TRANSFER

The Airtel Platform accessibility issues

Complete reliance on the Telco for Reports

Reports cannot easily be interpreted thereby making reconciliation very difficult.

Minimal product advertising which leads to low brand and service awareness.

MTN MOBILE MONEY

Plans are far advanced to roll out MTN Mobile Money Services in Mid March, 2015.

Training of operatives is underway.

The service will be available in 185 locations nationwide.

11

Livelihood Empowerment Against Poverty (LEAP)

LEAP is a social Intervention programme of the Government of Ghana designed

to provide a safety support net for rural poor and the underprivileged in society.

Background and Beneficiaries

The programme began in 2008 with one thousand five hundred [1500]

beneficiaries. They are unemployed and in most cases, unemployable.

Disbursements

Because of its wide network of Post Offices, the Ministry of Gender, Children and

Social Protection selected Ghana Post to disburse the LEAP funds to

beneficiaries.

12

CYCLE AMOUNT PAYABLE

DELIVERY COST CYCLE MONTH PAYMENT DATE

29th 4,064,628 54,000 Jan-Feb 19-23 May 2014

30th – 31st 7,985,856 54,000 Mar – Jun 21-25 July 2014

32nd 4,207,428 56,400 Jul – Aug 22-26 Sep 2014

33rd 4,207,428 56,400 Sep – Oct 17-21 Nov 2014

34th 5,940,960 77,400 Nov - Dec 26-30 Jan 2015

Ghana Post commission is 1% of the amount disbursed.

13

14

Ghana Post

Challenges

Insufficient

funding

Inadequate

cash floats

for

operation

Low Network

Connectivity

Lack of

governance

procedures

Low brand

and

product

awareness

How can Ghana Post

become more competitive

in the remittances market

Presented by The World Bank

Discussion Points

African Conference on Remittances and Postal Networks16

African Conference on Remittances and Postal Networks17

BUSINESS DEVELOPMENT

AND COMMERICAL

MANAGEMENT

African Conference on Remittances and Postal Networks18

• Practical summary of current GP contracts with MTO’s

• Includes scope, revenue model, pricing, change control and termination

• GP expectations and dependencies

• Action Plan / Recommendations

Contract Summary Report

• Requirements gathering procedures

• Evaluation Matrix

• Score sheet

• Cost Benefit Analysis Methodology

New Services Selection

Procedures

• Understand Partner Requirements

• Select Right Partners

• Establish Contract and Relationship

• Develop and Manage Relationship

Relationship Management Guide

• Establish marketing strategy

• Brand awareness

• Action Plan/BudgetMarketing Plan

APPROACHES THAT COULD BENEFIT GHANA POST

African Conference on Remittances and Postal Networks19

POSTAL

FINANCIAL SERVICES

African Conference on Remittances and Postal Networks20

International Remittances

Saving and Loans

Mobile Money

TransferInsurance

Bill Payments

Postal Money

Transfer

Agency Banking

Postal Banking

Currency exchange services

Interest bearing bonds

FINANCIAL SERVICES THAT COULD POTENTIALLY BENEFIT GHANA POST

African Conference on Remittances and Postal Networks21

APPROPIATE RISK AND

FINANCIAL MANAGEMENT

African Conference on Remittances and Postal Networks22

Risk Management Guide

• Assess Risk

• Mitigate Risk

• Monitor Risk

Data and Reporting Strategy

• Data Collection Strategy

• Performance Dashboard

Cash Management Models

• Budgeting/Forecasting

• Mitigate Liquidity Risk and Credit Risk

Compliance Report

• Identify requirements

• Acceptance Criteria

• Status and Action Plan

RISK AND FINANCIAL MANAGEMENT FOR GHANA POST

African Conference on Remittances and Postal Networks23

Planning and execution are equally

important to drive sustainable growth.

EXECUTION IS

KEY

THANK YOU

African Conference on Remittances and Postal Networks24

Questions

They are new too.