Working Papers

Postal Services in a Rapidly Developing IT and Telecommunications World – The Case for Postal Sector Reform in Egypt

Publication Number: ECESWP72-E

September, 2002

Author : Sahar Tohamy

Type : Working Papers

This paper analyzes the status of Egypt’s postal services and explores options to recommend a reform package to enhance the sector’s efficiency and competitiveness. The study compares performance indicators of Egypt’s postal services to those in other countries, and concludes that a vicious circle of low demand, low investment, and low quality of service characterize the current state of service provision in Egypt. Based on experience elsewhere, there are two types of reform packages: corporatization and commercialization models; and market-based reform models. The current institutional and regulatory status of Egypt’s postal sector suggests that ENPO’s legal status satisfies the main requirements of the corporatization model. However, various constraints on its commercialization exist. The most important of these constraints are heavily controlled domestic service prices and lack of compensation for the burden of universal obligation. As for market-based reforms, Egypt has not started the process yet. The next phase of reform requires a strategy to enhance competition, separate regulatory and management roles, and reduce the burden of universal service obligation.