Financially-struggling Malawi Posts Corporation (MPC) says it requires K17.8 billion to implement a turnaround strategy aimed at restoring its viability after years of losses and mounting debt. Postmaster general Angel Banda told the Media, Information and Communication Committee of Parliament in Lilongwe on Friday that the corporation has consistently failed to make profits and has accumulated about K11 billion in interest-related debt, dating back to its delinking from Malawi Telecommunications Limited (MTL). She said MPC continues to operate under an outdated business model in an increasingly digital environment, a situation that has constrained growth.
“We need support from government to channel services through post offices so that we can reach people in both urban and rural areas,” said Banda, citing services such as national registration, passports, road traffic, business registration and other public services. She said of the K17.8 billion required, MPC has so far mobilised about K1.4 billion. Banda said the strategy, to be implemented over five years, prioritises expansion of courier services, which she described as the corporation’s main revenue driver amid declining traditional mail usage.
However, she said full recovery is expected over a 10-year horizon. In response, committee chairperson Kingwell Liphuka urged MPC to urgently reposition itself and reclaim market share lost to private operators. He said several business ventures initially introduced by MPC have since been taken over by individuals and are now thriving.
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“The post office went into slumber, creating space for others to take advantage. If it wakes up, it can generate its own resources,” said Liphuka. MPC also told the committee it plans to dispose of three of its seven intercity buses, citing high maintenance costs.
The buses, which were withdrawn from service in July 2024, have reportedly been loss-making since their acquisition in 2019. The corporation obtained a K700 million bank loan, secured against its Blantyre office complex, to purchase the buses from China.
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