SIDS COUNTRIES POST OFFICE MODERNIZATION BUSINESS PLAN.pdf

This is a FREE template, business plan for modernizing the National Post Office, vital to the economic resilience of all Small Island Developing States (SIDS). Those post offices lose money every year. This presentation presents 10 opportunities that will take the post office from “annual-loss-making relic” to a ”national-service-asset: a logistics / export, financial, government, and community services hub”. You can adapt it to your needs. This is a model, so the numbers are illustrative, not country-specific. It assumes a medium-sized island (pop. ~500,000) with a national post office currently losing money. It is structured into short, medium, and long-term actions. It gives a roadmap for shifting from loss-making traditional mail to a sustainable multi-service hub.

2. •This is a path forward to modernize the post office, vital to the economic resilience of all Small
Island Developing States (SIDS).
•It presents 10 opportunities that will take the post office from “annual-loss-making relic” to
a”national-service-asset: a logistics / export, financial, government, and community services
hub”.
•Adapt it to your needs. This is amodel, so the numbers are illustrative, not country-specific. It
assumes amedium-sized island (pop. ~500,000) with a national post office currently losing
money.
•It is amodel business plan for a SIDS Post Office, structured intoshort, medium, and long-
term actions. It gives a roadmap for shifting fromloss-making traditional mailto asustainable
multi-service hub.
Introduction

3. 1.The Current State and the Need for Change
2.The Proven Cost-Management and Revenue-Growth
Opportunities for the Post
3.The Business Case for Enhanced Services and a
Sustainable Future
What will we cover?

4. The Current State and
the Need for Change

5. What are Small Island Developing States (SIDS)?
Small Island Developing States, or SIDS, are a group of 39 UN
member states and 18 associate members recognized for their
unique social, economic, and shared challenges:
1.Climate / Environmental Vulnerabilities: climate change and sea-
level rise, natural disasters, biodiversity loss and ocean health
2.Economic Challenges: narrow economic base, high import
dependence, high shipping / import costs, debt vulnerability,
over dependence on tourism, manufacturing and technology
sectors underdeveloped, energy dependence
3.Colonial Legacies, Structural and Geographic Challenges: small
size and limited resources originally designed to be dependent
and to supply European markets rather than self-sufficiency,
geographic isolation and remoteness, environmental fragility
4.Social and Institutional Challenges: brain drain, aging
population, migration and small labor markets, governance
capacity constraints
5.Health and education vulnerabilities: geographic isolation limits
advanced healthcare facilities, exposure to imported diseases
with limited domestic capacity to respond
Small Island Developing States
1. Antigua and Barbuda15. Haiti*29. St. Kitts and Nevis
2. Bahamas16. Jamaica30. St. Lucia
3. Barbados17. Kiribati*31. St. Vincent and the
Grenadines
4. Belize18. Maldives32. Seychelles
5. Cabo Verde19. Marshall Islands33. Solomon Islands*
6. Comoros*20. Micronesia (Federated
States of)
34. Suriname
7. Cook Islands21. Mauritius35. Timor-Leste*
8. Cuba22. Nauru36. Tonga
9. Dominica23.Niue37. Trinidad and Tobago
10. Dominican Republic24. Palau38. Tuvalu*
11. Fiji25. Papua New Guinea39.Vanuatu
12. Grenada26. Samoa
13. Guinea-Bissau*27. São Toméand Príncipe
14. Guyana28. Singapore
* Also Least Developed Country
Associate Members of United Nations Regional Commissions
1. American Samoa8. Curacao15. Puerto Rico
2. Anguilla9. French Polynesia16. Sint Maarten
3. Aruba10. Guadeloupe17. Turks and Caicos Islands
4. Bermuda11. Guam18. U.S. Virgin Islands
5. British Virgin Islands12. Martinique
6. Cayman Islands13. Montserrat
7. Commonwealth of
Northern Marianas
14. New Caledonia

6. Why do Post Offices in SIDS countries lose money every year?
Structural Challenges make it hard to be financially viable :
1.Dramatic erosion of the volume of international mail and
the corresponding reduction in the incoming UPU
Terminal Dues, usually the largest source of revenue for
SIDS
2.Transition of domestic bills (utilities) to online
3.Volume of inbound / outbound parcels goes to private
couriers (DHL, FedEx, UPS) offering better service and
tracking
4.UPU “Monopoly” Model never worked for small
countries (urban volumes never compensated for costs to
maintain national / rural network)
5.High fixed/operating costs largely due to energy costs
6.The maintaining of a universal service offering (USO) and
the choice not to modify their USO based on affordability
7.Built-in macroeconomic vulnerability (dependence on
fluctuation ontourism, remittances, and imports; events
like hurricanes / cyclones, global recessions, etc.) makes
recovery harder for small-scale operations.
Lagged in Adapting to Evolutions in the Postal
Industry:
1.Slow to modernize and still rely on oldlegacy systems,
home-made accounting systems or still using manual
transcribing.
2.Parcels moving too slowly through Customs; customers
are upset.
3.Still rely on rigid bureaucratic organizational structures
and administrative cultures (non-entrepreneurial) and
can’t compete, serve, act as agents for, nor align with
nimble fintechs, couriers, and mobile money providers
that have captured financial and logistical services.
4.Slow response to the need to move beyond “just-postal
products and services” to become viable and relevant.
5.Simply unprepared to operate in the new e-commerce
postal industry - poor logistics infrastructure (air/sea
connectivity, warehousing), high shipping costs deter
online shopping, limited bargaining power with
international platforms (Amazon, Alibaba).

7. What do Post Offices need to do to survive and thrive?
•The Post Office is a valuable and monetizable Government asset. It has an enviable
“network of post offices” and a brand as “trusted intermediary”.
•The Vision: Transform the post office from a “letter delivery agency” to amulti-purpose
national-service hubthat…
Ødeliversservices that citizens want, need and for which they are willing to pay…
Øcombininglogistics, finance and government services, and multiple digital and
community solutions...
ØThat will allow the Post Office to become financially sustainable.
•The Future State: The Post will transform from being a letter-delivery company to being a
parcel-export, parcel-delivery and local-to-local courier company that also provides a
wide-range of services that support the community’s ability to thrive and build a
sustainable future. It will go from being an “annual-loss-making relics”toan essential,
revenue-generating infrastructure and a “national-service-asset” that is no longer a
drain on government budgets, and apillar of national development.

8. 10 Proven Cost-Management
and Revenue-Growth
Opportunities for the Post

9. What are the proven opportunities for Post Offices?
•There are many global precedents for these “postal best-practices” opportunities.
•Many Posts have undertaken these initiatives with financial success and earned their citizens
support and appreciation.
•This list has been curated specifically to address the needs and challenges faced by SIDS
countries:
1.Lower operating costs (to process, sell,
and deliver)
2.Invest to new software, e-bikes /e-vans
and community mail boxes (CMBs)
3.Offer a range of Financial Services
4.Offer a range of Government Services
5.Sell MSME Products and Services &
Reposition the Post as a Logistics & E-
Commerce Hub
6.Promote and Grow “The Green Economy”
7.Promote and Facilitate “Food-Security
Initiatives”
8.Sell Fast-Moving Consumer Goods (FMCGs)
9.Support the Government’s health &
wellness policies
10.Support Natural Disaster Resilience

10. Lower operating costs to process
Lower the Cost-to-Process
1.Undertake cost-managing sustainability initiatives: electricity conservation strategies, install new
inverter-type air conditioners or added timers, add water conservation controllers, institute paper
conservation policies, and conduct regular vehicle servicing and phased replacement
2.Ensure postal rates cover costs to do your processing and delivery work.
3.Have standard pricing for ALL, however, Large Volume Mailers (LVM) can get discounts for work they
perform, such as pre-sorting and delivery to the plant. They can use postal codes to sort their mail by
downstream post offices / their mail will be charged and then skip the sortation plant.
•Posts operating in SIDS countries face higher fixed /operating costs
largely due to energy costs and the maintaining of a universal
service offering (USO).
•Posts also face macroeconomic / climate vulnerability
(dependence on imports; hurricanes / cyclones, global recessions,
etc.) makes recovery harder for small-scale operations.
•In many cases, postal rates have not been reviewed in years nor
have rate undergone a review as to whether they cover the work
involved in processing the mail. Philatelic stamps don’t cover costs.

11. Lower operating costs to sell
Lower the Cost-to-Sell
1.Relocate post offices to where citizens already shop (shopping malls, grocery stores, etc.)
2.Open new postal franchises (to achieve economies of scale, lower the operating cost to sell, and
increase service to the citizens) in host businesses. A corporate post office operating cost is 50-60% of
every $1.00 of sales / a franchise costs 20%. (See Trinidad & Tobago Post, Jamaica, etc.)
3.Open PUDO (pick-up & drop-off) agents.
Trinidad and Tobago Post
•Customers increasingly want to save time and conduct their
shopping and other business in one geographic area. Therefore,
post offices are increasingly moving to strip malls to address
customer needs and where there is ample parking.
•To provide more service locations, achieve economies of scale and
lower operating cost to sell, Posts have been opening postal
franchises in host businesses - shops, pharmacies, grocery stores,
gas stations and supermarkets. These are located in high-traffic,
urban areas where people tend to congregate to conduct their daily
business.

12. Lower operating costs to deliver
Lower the Cost-to-Deliver
1.Create a sortation section for a NEW “local-to-local courier delivery service”. This business unit will do
its own marketing, commercial sales, and also sell DHL services. Delivery will be completed by
independent contractors who use their own electric vehicles. (See Trinidad and Tobago Post)
2.Deliver all parcels and mail to community mail boxes / competitors can also deposit mail in the CMBs
for an annual fee to the Post. This will require fewer postmen who can be retrained for parcel delivery.
(See Curacao Post / Customers receive an email or SMS when there is post in their mailbox)
Curacao PostCuracao PostTT Post

13. Invest to new software
•Modern postal software facilitatesdigital transformation, enabling
Posts to offer new digital and financial services, bridging the digital
divide, improving operational efficiency, and providing access to e-
commerce and government services.
•It also helps overcome isolation, boosts local economies through
services for MSMEs, promotes inclusive growth, and supports the UN’s
Sustainable Development Goals (SDG).
Invest in ‘Post Global’, the modern postal software by Reason Solutions:
•Reasonable cost, low energy / bandwidth costs, cloud-based, module-based / scalable,
fully UPU compliant (IPS,CDS, IFS, SIO), easy to train staff, customer access app
software, regular system upgrades, etc.
•Complete postal-enterprise system: end-to-end track and trace, Portable Data Terminal
(PDT)for delivery mobile-ready apps, postal-counter sales / service operations, agent &
government services, bill payment, remittances, agent services, all mail room
operations, postal boxes, reliable mail collection and delivery; e-shop to sell online,
consistent customer experience (speed / tracking / meet delivery date expectation);
continued mail security,
•Management Control: end-to-end postal management including Key Performance
Indicators, management control of every step, easy-user-manageable software (add
products, change rates, etc.),
•Installed at: The Mauritius Post Limited,
Post Fiji Limited, Vanuatu Post Limited, TT
Post, Grenada Post, Barbados Postal
Service, FXDC Post (Caribbean Netherlands
- Bonaire, Sint Eustatius, and Saba)…..as
well as Ethiopia Postal Services Enterprise,
Malawi Posts Corporation, Tanzania Posts
Corporation, Zambia Postal Services
Corporation, Post Uganda, Postal
Corporation of Kenya, Zimbabwe Posts
(Pvt) Ltd., Botswana Postal Services,
Eswatini Posts and Telecommunications
Corporation, etc.)

14. Invest in e-bikes and e-vans
E-bikes provide numerous benefits for post offices in SIDS:
•Reduced costs,due to lower operating expenses than cars.
•Enhanced sustainabilityby decreasing carbon emissions,
andimproved operational efficiencythrough the ability to carry
heavier cargo and cover longer distances with less physical strain,
making them an ideal and accessible.
•Resilient solution for island logistics and climate action.
(See Correos de Cuba / e-bikes are manufactured in Cuba)
Invest in a fleet of delivery e-bikes and electric mail-transport vans
to reduce operating costs.
A post office can save significantly by switching from gas to electric
vehicles, with potentialfuel costs reduced by5-10
timesandmaintenance costs dropping substantially, though
specific savings vary based on factors like fuel prices, mileage, and
vehicle model.
Correos de Cuba
Barbados Post

15. Invest in community mail boxes (CMBs)
Invest in community mail boxes
Letter mail has higher profit margin than parcels. There is a
higher cost to process and deliver parcels.
Therefore, on average, for every letter lost, a Post needs 7 to 8
times the number of parcels. So, Posts must not only increase
parcels but also reduce their cost of delivery.
For SIDS, CMBs are a must-do for small, island posts:
•Cost-saving: less travel, reduced fuel and labor, fewer
vehicles, less insurance, less maintenance, fewer drivers, less
training (specific addressing knowledge of the postal carriers
is intensive training that is not needed once a CMB location is
installed)
•Environmental benefits:decreasing greenhouse gas
emissions,
•Enhances the financial stability and sustainability of postal
services in challenging island environments.
•CMB deliveries greatly increase the D+3 delivery standard.
•Curacao Post lowered the cost of delivery by about 50%
by installing community mailboxes. Competitors can also
deposit mail in the CMBs for an annual fee to the Post.
•A CMB is a group placement of mailboxes accessible via
a public road, typically located in public squares, parks or
other government property. Locations are also equipped
with security cameras.
•The CMB group comes in squares of 48 mailboxes (six
boxes high by eight wide) or 54 (six high, nine wide). On
average, a CMB location has between 500 and 1,500
individual mailboxes and the walking distance is
between 300m and 700m.
Curacao Post

16. Sell MSME’s Products and Services
1.Dominate the incoming e-commerce parcel market by signing-up citizens to a service from a partner, off-
shore, parcel-consolidating Warehouses.
2.Offer local-to-local same-day courier service, that will also sell DHL services.
3.Operate one-stop-shop, “advice centers for export trade” for all MSMEs (export information, forms such
as ER1, certification, accreditation / redirection centre); Offer cargo / freight shipping
4.Sell business / school supplies and business training guides / Partner to offer basic businesses courses

17. Sell MSME’s Products and Services
Create the MSME Export Infrastructure:
1.The ‘Post Global’ modern postal software offered by Reason Solutions contains an e-shop module that will
allow you to sell postal products online. It will also allow you to set up a marketplace to sell MSME
products on their behalf.
2.Sign-up MSMEs for participation to marketplace website, e-payment, warehousing - fulfilment - shipment
(local-regional-international), parcel track-and-trace
3.Sell affordable and cost-predictable pre-paid shipping boxes to facilitate shipping (predictable costing).
Images are AI Generated
Curacao Post
•MSMEs (micro, small and medium enterprises) make up 70%-
85% of all enterprises; contribute 60%-70% of GDP; account
for at least 50% of employment; and are about 40% owned by
women; but represent a small percentage of exports.
•MSMEs are the only force that can ensure exports, financial
benefit for all, eliminate poverty and inequality and help
the Government achieve the UN’s (SDGs).
Curacao Post / e-commerce website, curmade.com

18. Offer a range of Financial Services
•Offering financial services at post offices in SIDS
is particularly valuable where there is
geographical dispersion, limited infrastructure,
and a high reliance on remittances and informal
economies that make traditional banking
difficult to access for many citizens.
•Post offices serve as a reliable, trusted, and
widespread physical network, allowing (through
partnerships) the delivery of essential financial
services like bill payments, remittances, basic
banking accounts, and insurance.
Correos de CubaGuyana Post OfficeBahamas Postal Service
BENEFITS:
PEOPLE: Empowers people (gives a sense of worth & savings become
assets they can borrow against) / reduces poverty, increases social
stability, and improves quality of life / increases women’s participation
in the workforce, reduces poverty among women, and increases gender
equality
BUSINESSES: Gives “necessity entrepreneurs” and small businesses
access to credit, promotes socio-economic development, the
development of local micro-economies
COUNTRY: Promotes social and rural stability, food security, promotes
financial inclusion, provides access to affordable services, strengthens
the financial sector, and contributes to GDP growth

19. Offer a range of Financial Services
Initiate third-party partnerships - Money Gram / Western Union, cellular providers, bank or credit-union, utilities, etc. to
offer:
1.Agent services: bill payment, lay-away plans with retailers, etc.
2.Pensions and social payments with the budgeting option to set-aside money for utility payments and savings
3.Remittance transfers at lower service-charge rates
4.Mobile phone top-ups and mobile money cash-in and cash-out services including Posts’ own, labelled money card
and mobile money as well as cash-in / cash-out service
5.Basic banking services to credit union accounts (lower fees), micro loans, insurance, prequalification for business
loans, etc.
Correos de CubaGuyana Post OfficeBahamas Postal Service

20. Offer a range of Government Services
•If government services were offered to citizens, at post offices
near their homes, SIDS citizens would benefit from increased
accessibility and convenience in accessing essential services.
•Many citizens live outside urban areas and it can take days to
get things done. Online services help, but many have no
Internet, and many do not all have a credit card.
•This shift will also allow the Government to reassign service
staff to more impactful projects and deliver more for Citizens.
(Many Posts worldwide offer Government services).
1.Offer a wide range of government services - Passport renewals, Driver’s licenses, Business registrations,
utility payments, and social benefit disbursements, government cheque cashing, providing government
information to the public, using vote-by-mail postal ballots for elections, etc.
2.Collect information for Government agencies and private parties – such as MSME export information or
registration, weather sensors mounted on postal vehicles (Finland), reporting on the physical condition
of roads (France), and collecting air pollution samples (Belgium), conduct surveys (Geoptis is a survey
subsidiary of LaPoste / France), etc.
Barbados Post

21. Promote and grow the Green Economy
•Many SIDS countries are already promoting and growing their green
economybecause it offers significant opportunities for sustainable
development, climate change resilience, and economic
diversification.
•A green economy allows SIDS to leverage their unique strengths, such
as large ocean territories and renewable energy potential, to
improved health, create green jobs, enhance food security, greater
energy securityand affordability, and transition away from
vulnerable, carbon-intensive industries.
1.Many post offices sit onprime real estatein town centers. Partner and promote electric vehicles and solar power
including operating for-a-fee, charging stations generating power for the office, the Post’s e-vehicles, and sold back
to the Power Company
2.Offer energy-saving home retrofits including offering customer loans, tax-credits and other incentives for solar panels
3.Be recycling centres for batteries & glass. Be plastic recycling drop-off location, giving out grocery-store discount
coupons, in exchange for returned plastics
4.Display Social Responsibility Posters in offices and on vehicles (climate change / renewable energy, clean beaches,
plastics collection and recycling, marine-life awareness, etc.)
AI Generated Image

22. Promote and facilitate food-security initiatives
1.Promote “Buy Local” program and work with others to promote the value-added transformation of commodities
(fruits, vegetables, spices etc.). Transport local produce and deliver it to hotels, resorts and supermarkets. This
eliminates costly empty postal van on return runs. Also, act as a vital transportation link between remote
communities and essential food supplies.
2.Team-up with the Hotel Association to encourage buying locally-grown produce (fruits, vegetables, spices, etc.) and to
create acceptable packaging. Buy value-added transformed commodities - locally-made spa products and beauty
products, jam and jellies, hot sauces, etc. As well as buy local artwork.
3.Expand the use of rural post offices: free Internet service (market availability and prices for products, livestock sales,
advertise products or businesses, communicate with customers, selling goods, etc.), deliver livestock vaccinations and
medicines, offer trade papers, promote nutritional education, access to Government information / services and
assistance in filling out forms, banking services, online ordering of products, bill payment, etc.
•Post office involvement in supporting food security is a developing
area.However, supporting family farms spur economic
development by creating jobs (especially for youth) reduces the
food import bill, improves community health, and fosters greater
resilience against external shocks, aligning with the SDGs for SIDS.
•A number of SIDS countries are involved in regional food security
initiatives through theUN’s Food and Agriculture Organization (FAO)
including post-disaster recovery for farmers.

23. Sell fast-moving consumer goods (FMCGs)
1.SELL DRINKS (Water, soda, juices, energy drinks, etc.); SNACKS (candy, cough drops, chips, snacks); and FOOD
(noodles, cereals, peanut butter, cookies, chips, bread, flour, jam, salt and pepper, etc.);
2.SELL HEALTH / BEAUTY (soaps, shampoos, toothpastes, shaving products, electric razors, hair dryers, combs and
brushes, deodorants, skin cream, shoe polish, tissues, diapers, etc.);
3.SELL HOUSEHOLD PRODUCTS (soap, cleaning / laundry products, kitchen accessories, tools, tape, electrical
extensions, etc.); PHONES ACCESSORIES (batteries, earphones, cellphone power banks, charging cables, Bluetooth
items, etc.); and SOLAR PRODUCTS(cell phone chargers, radios, lanterns, portable lights, solar-powered light bulbs,
low-power home appliances, etc.);
4.SELL SOCIAL-RESPONSIBILITY ITEMS (reading glasses, non-prescription medicines, etc.)
•Offering FMCG at post offices in SIDS provides value byincreasing
revenue, improving financial sustainability for postal services,
access everyday products at reasonable cost, access to more local
products, and enhancing convenience for residents who gain
access to essential goods.
•It leverages existing postal infrastructure, like the postal network's
presence in remote areas, to become a more integrated
community service and a driver for local economic growth.(See
Post Fiji) Post Fiji

24. Support the Government’s wellness policies
Images are AI Generated
•SIDS are disproportionately represented among the countries with the
highest estimated risk of dying prematurely from any of the four main NCDs,
cardiovascular diseases, cancer, diabetes, or chronic respiratory diseases.
•The population in many Small Island Developing States (SIDS) is also
disproportionately older, with a share of people aged 65 or over that is
twice as high as in other countries. This trend is projected to accelerate, with
half of all SIDS expected to experience a doubling of their older population by
2055. Factors contributing to this include declining fertility rates and
persistently high rates of out-migration, particularly among young people,
which exacerbate population ageing.
1.ACTIVITIES: Wellness and medical check days; Blood-donor, vaccination clinics; Home wellness checks for
the elderly,
2.INFORMATION: Free monthly newsletter for seniors; Information on critical diseases;
3.PRODUCTS: Sell non-prescription goods;
4.DELIVERY: Free delivery of prescriptions for elderly, delivering blood and samples to laboratories;
5.FACILITATION: Making online doctor appointments; Partnering with supermarkets to provide meal
options;
6.SERVICES: Deliver and install health and safety equipment for elderly, Arranging for home/garden
maintenance and the installation of safety equipment; Telehealth Internet Calls
AI Generated Image

25. Support Natural Disaster Resilience
Images are AI Generated
The Post will be an equal member of the Emergency
Management Standing Committee. It will work year-round with
emergency responders and alert communities ahead of a
dangerous storm. After a storm, it will disseminate disaster-
relief packages, food, medical aid, etc.; operate as a food bank
and water distribution point; deliver needed remittances;
identify the vulnerable, find family and direct citizens to safe
locations; use generators to provide free cell phone charging;
and provide free, replacement identity documents.
Correos de Cuba
•SIDS suffer disproportionately high losses,
with disaster mortality rates more than
double the global average; and a
significantly larger percentage of their
population is affected by disasters compared
to non-SIDS countries.
•SIDS countries need natural disaster
resilience..
•Note: Correos de Cuba has a very developed
Disaster Management Programme and is
fully involved in disaster risk management
activities on a national level.
•The UN’s Development Programme has listed
Cuba’s Risk Reduction Management Centres
in its “Best Practices in Risk Reduction”. The
United Nations, Oxfam, the International
Federation of the Red Cross and Red
Crescent Societies have stated that Cuba is
“an example for other countries to emulate
in risk reduction”.

26. The Business Case for
Enhanced Services and
a Sustainable Future

27. The Business Plan – The Current and Future State
Financial Sustainability Framework: With phased reforms, a Caribbean post office can move from aUSD 5M
annual loss todayto aUSD 15M profit within 10 years, while expanding its role as alogistics, financial, and
government hub.
Current Year 0
of the Post Office:
Transition Year 5
of the Post Office
Future Year 10
of the Post Office
The Vision: Transform the post office
into anational service hubthat
deliverslogistics, financial services,
government access, and community
value, while being financially
sustainable.
The Future State:The post office is no
longer a drain on government
budgets, but aprofitable public
enterpriseand apillar of national
development.
Finances: Revenue USD $10M,
Expenses USD $15M → Deficit USD
–$5M
Finances: Revenue USD $22.5M,
Expenses USD $18.5M → Profit USD
+$4M
Finances: Revenue USD $40M,
Expenses USD $25M → Deficit USD
+$15M
Activity Mix Evolution: 80% letters,
20% parcels & other
Activity Mix Evolution: 40% logistics,
30% financial services, 20%
government, 10% other
Activity Mix Evolution: 40%
logistics/e-commerce, 30% financial
services, 20% government, 10%
retail/other

28. The Business Plan – Three Phases of Work
Short Term (0–2 years)
STABILIZE
Medium Term (3–5 years)
DIVERSIFY
Long Term (6–10 years):
EXPAND
Quick Wins:Improve visibility, customer convenience, capture more parcels business, build
foundations
Operational Efficiency / Effectiveness & Manage Costs
•PROCESS: Undertake cost-managing sustainability initiatives / Review and adjust postal rates /
Encourage LVMs to sort to downstream delivery office / Optimize routes to reduce fuel costs /
•SELL: Relocate offices to where people shop / Open franchises and pick-up & drop-off agents.
•DELIVER: Begin community mail box program / Reassign staff to sort in NEW same-day, local-to-
local courier delivery service / invest in e-bikes and e-vans
•MANAGE: Begin new software program to implement ASAP / initiate third-party partnerships
(Money Gram / Western Union, cellular providers, bank or credit-union, utilities, e-retailers,
consolidator / warehouses, e-car dealers, etc.)
E-Commerce & Logistics
•Partner with parcel consolidator and sign-up citizens to buy online and have post office deliver
•Partner to sell DHL
•Introduceflat-rate boxesto simplify parcel shipping
•Begin training to sell cargo / freight services. Set up “Advice Center for Export Trade”.
•Sell business / school products
•Start building the Post Office “MSME Export Infrastructure” (marketplace website, e-payment,
warehousing - fulfilment - shipment (local-regional-international), parcel track-and-trace)
Financial Services (Entry Level)
•Expandbill payment services(utilities, mobile phone, etc.).
•Partner will cellular / mobile money providers for top-ups and cash-in and cash-out
•Relaunchpostal money transfer/remittance partnerships
•Partner with bank or credit union to offer basic banking services, micro-loans, etc.
•Partner with insurance company to offer insurance
•Explore other possibilities.
Government Services Integration
•Train branches intoone-stop service centersfor: Government forms and information, assistance in
filling out forms, passport renewals, driver’s licenses, business registration and tax payments,
social benefit distribution, etc.
•Discuss with Government - Green Energy program, food-security, wellness, disaster management
Growth Engine:Position the post office as
afinancial-inclusion providerand
agovernment access hub
Postal Banking & Fintech
•Offermicroloans, prepaid debit cards,
and insurance(especially for rural
communities)
•Use Post Global software to pilotmobile
money walletlinked to postal accounts
and direct remittance transfer vis
Internet
Government Services Integration
•Continue to expand services
•Examine possibilities to collect
information for the Government
E-Commerce & Logistics
•Implement e-shop module of Post Global
software
•Work with MSMEs and Small Business
Associations to encourage exporting and
the Post’s Export Infrastructure
Promote Green Economy
•Promote Green economy
•Partner with e-car dealer to open
charging stations
Sell Fast-Moving Consumer Goods
•Begin selling FMCG in selected locations
Regional Cooperation
•Developshared air/sea cargo
partnershipsamong islands; bulk
negotiations with couriers and airlines
Future State:The post office is no longer a
drain on government budgets, but
aprofitable public enterpriseand apillar of
national development
Digital First Post Office
•Transition all transactions toonline/mobile
platforms(parcels, banking, government
services)
•DeployAI-based logistics optimizationfor
routing and customs clearance
Regional & International E-Commerce Hub
•Perfect logistics /warehouses / fulfillment
centersto serve as agatewayfor global e-
commerce
•Attractmore fulfillment contractsfrom
small businesses and global platforms
Green & Climate-Resilient Brand
•Complete conversion of fleet toe-bikes
and electric vehicles
•Complete solarization of post office
branches and warehouses
•Market the post office as asustainable,
carbon-neutral logistics provider
Community & Social Role
•Expand intodigital literacy programs,
wellness centers, rural internet access &
food security hubs, and e-learning hubs
•Maintain post offices astrusted
community anchors, ensuring nationwide
inclusion

29. The Business Plan – The Financials
Short Term (Years 1–2) – Stabilize
•Actions: Improve Efficiency and Effectiveness & Manage Costs (processing, selling, delivering, managing / Digitize the post
office / partner to capture more parcel business and to begin financial services / begin Government services / begin Green
Energy Program, support health and wellness, expand disaster resilience
•Deficit shrinksdue to parcel growth (+20%/year) and new services
•Activity Mix Evolution: 80% letters, 20% parcels & other
YEARREVENUE (USD $M)EXPENSES (USD $M)NET RESULT (USD $M)
111.5 15.0 -3.5
213 15.5 -2.5
Medium Term (Years 3–5) – Diversify
•Actions: Expand Postal banking rollout, bill payments, pre-paid debit cards, mobile top-ups, mobile money cash-in and cash-
out, insurance / government service counters, implement e-shop MSME marketplace / promote Green Economy / start selling
Fast-Moving Consumer Goods / Regional Cooperation
•Break-even by Year 3, profitability by Year 4. Postal banking and government service fees become strong contributors.
•Activity Mix Evolution: 40% logistics, 30% financial services, 20% government, 10% other
YEARREVENUE (USD $M)EXPENSES (USD $M)NET RESULT (USD $M)
316.0 16.0+0.0
419.0 17.0+2.0
522.5 18.5+4.0

30. The Business Plan – The Financials
Long Term (Years 6–10) – Expand
•Actions: Total digital platform / Complete regional e-commerce hub / Green & Climate-Resilient Brand / Complete Community
and Social Role
•ByYear 10, the post office generatesUSD $40M in revenue, nearly quadrupling its baseline. Expenses rise modestly due to
scaling operations, but profits grow steadily.
•Activity Mix Evolution: 40% logistics/e-commerce, 30% financial services, 20% government, 10% retail/other
YEARREVENUE (USD $M)EXPENSES (USD $M)NET RESULT (USD $M)
626.0 20.0+6.0
729.5 21.5+8.0
833.5 22.5+11.0
937.0 23.5+13.5
1040.0 25.0+15.0

31. FOR THE POST
1.Now a logistics, financial, government,
and community hub
2.Efficient and effective organization
3.Revenue growth, more jobs
4.Renewed relevance
5.Financial: From –5M loss to +15M profit
6.Hub for citizens to access financial and
government services, close to home
7. Expanded viability of rural post office
and reduced urbanization
8.Enabled MSMEs
9.Kick started the Green Economy,
promoted wellness, facilitated Food-
Security
STRENGTHENED ITS BRAND
1.The Government is seen as innovative
and forward-thinking
2.Citizens feel their Government “works
for them”
3.Citizens are more satisfied
4.New support from the labour
movement
5.Benefited from synergy with the Post’s
strong, trusted brand
6.In addition, all of the above, provided
significant, positive media
opportunities for the Government
The Business Plan – The Future State
FOR THE CITIZENS & THE ECONOMY
1.Increase in renewable energy
2.Increased national pride and patriotism
3.Higher number of MSMEs with improved
skills, increased exports, jobs increased,
less citizens left to work abroad, GDP
grew, rise in MSME registrations, growth
in tax base, lower trade deficits, etc.
4.Less poverty and inequality
5.Unused socio-economic payments and
money from postal deficits to other
priorities
6.Strengthened food security and less
decline in rural areas
7.Closer to achieving the SDGs

32. The Business Plan - The Ask / Approve in Principle
1.Direction: Direct the Post Office to transition to a logistics, financial, government, and community hub – by conducting a rates review and adjustment, lowering operating costs, expanding its parcel business, expanding into local-to-local / same day courier
2.Policy support: Expand the Post Office mandate to include finance services, government services, promoting the Green Economy, facilitating food-security, selling business / school supplies and fast-moving consumer goods, supporting the Government’s wellness policies and supporting natural disaster resilience
3.Investment: Authorize modern postal software, community boxes, e-bikes and vans
4.Regional cooperation: Work with regional Posts to achieve bargaining power and economies of scale / lower software and CBM costs / lower delivery costs for air mail transportation etc.