60% of courier providers are illegal, says UCC
What you need to know:
Over 60 percent of courier service providers are in the hands of illegal operators
The Uganda Communications Commission (UCC) has revealed that currently, more than half of courier dealers - 60 percent - are operating illegally. This was during an engagement between UCC and the postal and courier sector that was aimed at addressing emerging regulatory issues in the sector.
The director industry affairs and content Uganda Communications Commission, Ms Julianne Mweherie, said although Uganda has registered growth in the number of licensed courier service providers in the past two years, there are still illegal courier service providers in the country, which they are working hard to eliminate.
“The number of licensed courier service providers has increased from 17 to now 40 companies, we would like to see everybody in the industry come and get licenses from us and people should only use the licensed courier service operators,” she said.
However, Ms Mweherie expressed disappointment that only 40 percent of the courier businesses are in the hands of domestic operators (national business) while 60 percent are in the hands of illegal operators.
“We promote competition because we want a lot of people to come in this space of the courier business, it creates employment and increases internet penetration.”
UCC hopes that the emergency courier services subsector will be the main driver of e-commerce in the country because they can deliver items up to the client’s door post.
Speaking during the postal and courier stakeholder engagement, on Tuesday, 2023, at UCC headquarter at Bugolobi, the director corporate affairs Uganda Communications Commission, Mr Fred Otunnu Okot, said posts and couriers have a big role in driving the social economic transformation in the country.
“Postal and courier services have undergone evolution over the years, with advances in technology. Through innovations and digital transformation, we have seen continuous growth in e-commerce that can only be driven by courier companies to complete the supply chain,” he said.
The UCC manager postal services, Ms Agatha k Mbabazize, said postal services are the driver of e-commerce because of changes in customer choices, needs and preferences, stressing that people order online and delivery done by the post and courier.
Courier driving e-commerce
E-commerce is steadily growing in the country and Uganda’s e-commerce market offers a wide range of goods and services, which calls for players to get licences to take up the existing opportunities in the market, because it benefits both the service providers and consumers in terms of convenience.