Madagascar: towards the creation of a postal bank
June 5th 2023
The African postal sector is changing, driven in particular by the acceleration of digital transformation. Sector players want to transform and reposition themselves in the market in order to remain competitive.
The Malagasy government is working on the creation of a banking subsidiary of Paositra Malagasy (PAOMA). The project is expected to expand Madagascar Post’s financial activities and promote financial inclusion. It was presented in the latest monthly activity report of the Ministry of Digital Development, Digital Transformation, Posts and Telecommunications (MNDPT), before the National Assembly.
The official launch of the postal bank is subject to obtaining approval from the Banking and Financial Supervision Commission (CSBF). The government plans to operationalize 28 agencies before the end of the year. More than 250 agencies are planned to cover the whole island.
On May 18, 2022 the Malagasy government decided to create the postal bank. Its economic model was validated on April 18. The capital of the new entity will be held by PAOMA up to 65% and by the National Participation Company (SONAPAR) up to 35%.
The creation of the postal bank is part of the modernization process of Paositra Malagasy. ” If before, the post was content with courier services, today this area is very advanced, the post must diversify its activities and modernize its offers ,” said Andry Rasoanaivo, secretary general of the MNDPT. PAOMA already provides financial services through Paositra Money.
In addition to financial inclusion, the creation of the postal bank should help accelerate the Malagasy government’s digital transformation ambitions. In April 2022, the executive decided to digitize public expenditure payments, including salaries and allowances for state employees, university scholarships, etc.
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