Ghana Post Company Limited has decided to venture into banking as part of its move to expand its frontiers.
According to the Managing Director (MD) of the company, Mr Eric Yao, the bank, which would be established next year at all the branches of the company would push the company’s agenda of financial inclusion to the rural area.
Mr Yao was speaking at the 7th Annual General Meeting (AGM) of the company in Accra last Thursday and added that the setting up of the bank “will push our agenda of financial inclusion to the rural areas.”
It would also help in job creation in the rural areas as it would boost business because the company would provide financial assistance to the beneficiary communities.
Other initiatives
Mr Yao further indicated that the company would also enter into estate management by next month and strengthen its other services.
“Before the close of this year, we will start a project at Lashibi on a 46-acre land. We are building a whole new community and that also would help alleviate the pressure in terms of housing deficit,” Mr Yao explained.
He further stated that the company planned to leverage its lands and properties, as well as go into e-commerce to boost its activities.
Mr Yao also said Ghana Post would soon be launching its debit card which would enable clients to purchase items irrespective of where they were.
Challenges
The Chairman of the Board of Directors of the company, Brig. Gen. Joseph Klobodu (retd) said Ghana Post had in the past lost priority mail services for recruitment into the security services to the major banks in the country.
He disclosed that the Gender Ministry had also taken the company off the list of service providers who assisted with the LEAP payment, thereby crippling the company financially.
In addition, he said, the company was threatened by technology.
“The Internet and associated emails platforms for transmitting information pose serious threats to traditional mails worldwide. Plans by the Ghana Post to take advantage of technology by introducing e-commerce are far advanced,” he said
Fundraising
Brig. Gen. Klobodu (retd) said the company faced challenges in raising funds from the banks to purchase vehicles and other operational inputs to improve mail transmission and delivery.
He added that the instability in electricity supply also adversely affected operations at the counters and mail offices, as well as administrative activities.
“This had negative implications. For financial services for example, customers moved swiftly to nearby banks, which had high capacity generators to stem the tide,” he said.
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