African Conference on Remittances and Postal Networks Day 2 S1 N1 Ghana GhanaPost - World Bank

1. ITS ROLE AND POTENTIAL
GhanaPost
March 5, 2015

2. 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

3. Role of Ghana Post in
Remittances
Presented by Ghana Post

4. 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

5. 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

6. 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
.
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7. 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

8. 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

9. 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 of
2015.
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.
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10. 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

11. 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
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12. 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.
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13. 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

14. 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.
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15. 14
Ghana Post
Challenges
Insufficient
funding
Inadequate
cash floats
for
operation
Low Network
Connectivity
Lack of
governance
procedures
Low brand
and
product
awareness

16. How can Ghana Post
become more competitive
in the remittances market
Presented by The World Bank

17. Discussion Points
African Conference on Remittances and Postal Networks16

18. African Conference on Remittances and Postal Networks17
BUSINESS DEVELOPMENT
AND COMMERICAL
MANAGEMENT

19. 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/Budget
Marketing Plan
APPROACHES THAT COULD BENEFIT GHANA POST

20. African Conference on Remittances and Postal Networks19
POSTAL
FINANCIAL SERVICES

21. African Conference on Remittances and Postal Networks20
International
Remittances
Saving and
Loans
Mobile
Money
Transfer
Insurance
Bill
Payments
Postal
Money
Transfer
Agency
Banking
Postal
Banking
Currency
exchange
services
Interest
bearing
bonds
FINANCIAL SERVICES THAT COULD POTENTIALLY
BENEFIT GHANA POST

22. African Conference on Remittances and Postal Networks21
APPROPIATE RISK AND
FINANCIAL MANAGEMENT

23. 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/Fore
casting
• Mitigate
Liquidity Risk
and Credit Risk
Compliance
Report
• Identify
requirements
• Acceptance
Criteria
• Status and
Action Plan
RISK AND FINANCIAL MANAGEMENT FOR GHANA
POST

24. African Conference on Remittances and Postal Networks23
Planning and execution are equally
important to drive sustainable growth.
EXECUTION IS
KEY

25. THANK YOU
African Conference on Remittances and Postal Networks24
Questions
They are new too.