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Posta Uganda Grapples With1.7 Billion Debt Crisis,Operational Uncertainty

Uganda’s national postal service, Posta Uganda, is grappling with a debt of UGX 1.7 billion due to unpaid license fees, a burden that has been accumulating since 2017. The matter came to light during a meeting on November 18, 2024, involving the Parliamentary Ad Hoc Committee and officials from the Uganda Communications Commission (UCC).

Abudu Sallam Waiswa, UCC’s head of Legal Affairs, revealed that Posta Uganda’s mail and deposit license expired in 2021, and the organization has yet to renew it despite repeated reminders.

“For years, we have urged them to apply for a new license, but the situation remains unchanged. Operating without a valid license has significantly hampered their operations,” Waiswa told the committee.

Despite the challenges, UCC has allowed Posta Uganda to continue functioning, citing Uganda’s obligations under the Universal Postal Union (UPU) Convention, which requires the country to maintain a designated postal operator. However, UCC officials expressed concern over the increasing financial and operational strain on the organization.

“We are under pressure to ensure Uganda upholds its international commitments while addressing the financial and structural issues at Posta Uganda,” Waiswa explained.

The UCC also warned that failure to resolve these issues might force the government to explore alternatives, including designating a private entity as the national postal operator. This model has already been adopted in several African countries, such as Algeria, Egypt, and Morocco.

Members of the Parliamentary Ad Hoc Committee acknowledged the critical role of postal services in Uganda and emphasized the need for urgent reforms to stabilize Posta Uganda’s operations.

As discussions continue, the focus remains on finding a balance between fulfilling international obligations and addressing the financial and licensing challenges threatening the future of Posta Uganda.

 

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