CHAMWE KAIRA
The Namibia Post Ltd Group says it has successfully cushioned the continued decline in its traditional postal business by expanding its financial services operations and developing new revenue streams, even as letter volumes and post box usage continue to fall.
The Namibia Post Ltd Group has three business units, which together comprise NamPost Ltd (NamPost or the company). The Group includes NamPost Financial Brokers (Pty) Ltd (PostFin), a 100% owned subsidiary.
The state-owned postal operator reported that mail volumes remained at 5.9 million items in 2025, while post office box occupancy declined further to 45%, down from 50% in 2024 and significantly lower than the 90% recorded in 2016. Mail-related revenue also fell to N$78 million from N$83 million the previous year.
The decline reflects a broader global trend as digital communication replaces traditional mail services. According to the Universal Postal Union, global letter post volumes fell by 35% between 2013 and 2023, while volumes in Africa declined by 75% over the same period.
NamPost said although global parcel deliveries have tripled over the past decade due to the growth of e-commerce, parcel volumes in Africa have declined by 44%, and competition in the logistics sector is intensifying.
“While opportunities for parcels and logistics are expected to increase in Namibia in line with the global trend driven by e-commerce and online shopping, these business lines are increasingly competitive,” the company said.
To counter the structural decline in postal services, NamPost has focused on growing its financial services business, supported by increasing digitalisation.
The company said digital technologies are creating opportunities to improve the accessibility, convenience and functionality of financial services for consumers and small and medium-sized enterprises.
Regional postal operations continue to face challenges due to the ongoing business rescue process at the South African Post Office.
Most international mail destined for Southern Africa passes through the Johannesburg postal hub, affecting the efficient movement of mail and parcels to and from Namibia.
NamPost also highlighted its growing role in distributing social grants. The number of Namibians receiving non-contributory social protection increased by 68.7% between 2014 and 2021, rising from 353 339 to 596 247 beneficiaries. Child and old-age grants account for 88.3% of beneficiaries.
Around half of social grant recipients now receive payments through NamPost SmartCard accounts or commercial bank accounts. As of October 2025, 299 637 beneficiaries qualified for social cash grants with a combined monthly value of about N$300 million.
Despite the challenges in its postal business, NamPost reported improved financial performance in 2025. Deposits increased to N$6.4 billion from N$6.2 billion a year earlier, while assets grew by 7.4%.
Revenue increased by 3%, expenses rose by 6.1%, and profit before tax climbed to N$75.5 million from N$58.2 million in 2024. Profit after tax increased by 35.9%, reversing the decline recorded in the previous year, while return on equity stood at 10%.
The company said stringent cost control measures and prudent liquidity management continue to support its long-term sustainability and value creation.
NamPost invested N$343 million in employee remuneration during the year, up from N$317 million in 2024, while training expenditure increased to N$6 million from N$4 million.
The company maintained a network of 136 service points, expanded its money market agent network to 11 outlets, had 282 825 active Visa SmartCards, issued 42 424 new insurance policies, and paid N$105 million in taxes during the year.
