The Palop
The Cost of Clandestine Deliveries in Mozambique
The proliferation of illegal delivery services worries the regulator in Mozambique. Discover the economic impact and the INCM's measures to organize the sector.
The digital revolution has brought undeniable conveniences to how we consume and transact goods, but it has also opened doors to a robust and hard-to-track parallel market. In Mozambique, an increasing number of companies and individuals are providing mail and parcel delivery services completely illegally, a reality that is already worrying the national regulator.
The Digital Boom and the Growth of Informality
The growth of e-commerce, driven by social networks and informal sales platforms, has created a massive demand for last-mile logistics services. To respond, independent operators who bridge the gap between the seller and the final consumer have multiplied. The National Communications Institute of Mozambique (INCM) points to rapid digitalization as one of the main factors for this proliferation.
Currently, there are 38 postal sector companies operating legally in the country. However, behind the scenes of busy streets and digital networks, a web of unlicensed delivery drivers operates whose exact number escapes the control of authorities.
The Regulator's Warning Regarding Tax Evasion
The proliferation of clandestine deliveries represents not only a risk to the security of goods but also a silent hole in public finances. The INCM admits that it does not have exact data on the number of illegal operators and, therefore, does not know the real amount the State loses annually due to the lack of registration and corresponding taxation.
This tax evasion in a rapidly expanding service becomes even more critical at a time when regarding the need to consolidate internal revenues. The impact of informal logistics and smuggling on the State's accounts is a systemic problem. In a parallel case of uncontrolled outflow, the recent , demonstrating how the movement of goods under the authorities' radar drains vital resources for the economy.
The Urgency of an Association in the Postal Sector
To try to put the house in order, the postal sector regulator met with companies in the field in the city of Maputo. The immediate conclusion was that the sector suffers from fragmentation.
Currently, the INCM is struggling with the lack of a single interlocutor or a representative platform with which it can interact in a structured manner. The lack of an association of postal operators is pointed out as one of the major barriers to formalization, which is why the institution is now challenging companies in the sector to unite and organize themselves into an association.
Next Steps for Market Legalization
Legalizing the transport of mail and small goods is not just a bureaucratic issue, but also a matter of national security. Unmonitored delivery routes are, historically, open doors for illicit activities crossing provinces and borders. In a broader effort to mitigate the illegal transit of goods, governments in the region have intensified control, as seen when .
For the INCM and the Government, the challenge now lies in creating incentives for the formalization of small delivery operators. Making licensing more accessible and demonstrating the benefits of belonging to a regulated sector could be the key to ensuring that, in the near future, the motorcycles and vans guaranteeing digital commerce logistics in Mozambique operate out in the open, duly contributing to the national economy.
Sources and related reading:
The Digital Boom and the Growth of Informality
The growth of e-commerce, driven by social networks and informal sales platforms, has created a massive demand for last-mile logistics services. To respond, independent operators who bridge the gap between the seller and the final consumer have multiplied. The National Communications Institute of Mozambique (INCM) points to rapid digitalization as one of the main factors for this proliferation.
Currently, there are 38 postal sector companies operating legally in the country. However, behind the scenes of busy streets and digital networks, a web of unlicensed delivery drivers operates whose exact number escapes the control of authorities.
The Regulator's Warning Regarding Tax Evasion
The proliferation of clandestine deliveries represents not only a risk to the security of goods but also a silent hole in public finances. The INCM admits that it does not have exact data on the number of illegal operators and, therefore, does not know the real amount the State loses annually due to the lack of registration and corresponding taxation.
This tax evasion in a rapidly expanding service becomes even more critical at a time when regarding the need to consolidate internal revenues. The impact of informal logistics and smuggling on the State's accounts is a systemic problem. In a parallel case of uncontrolled outflow, the recent , demonstrating how the movement of goods under the authorities' radar drains vital resources for the economy.
The Urgency of an Association in the Postal Sector
To try to put the house in order, the postal sector regulator met with companies in the field in the city of Maputo. The immediate conclusion was that the sector suffers from fragmentation.
Currently, the INCM is struggling with the lack of a single interlocutor or a representative platform with which it can interact in a structured manner. The lack of an association of postal operators is pointed out as one of the major barriers to formalization, which is why the institution is now challenging companies in the sector to unite and organize themselves into an association.
Next Steps for Market Legalization
Legalizing the transport of mail and small goods is not just a bureaucratic issue, but also a matter of national security. Unmonitored delivery routes are, historically, open doors for illicit activities crossing provinces and borders. In a broader effort to mitigate the illegal transit of goods, governments in the region have intensified control, as seen when .
For the INCM and the Government, the challenge now lies in creating incentives for the formalization of small delivery operators. Making licensing more accessible and demonstrating the benefits of belonging to a regulated sector could be the key to ensuring that, in the near future, the motorcycles and vans guaranteeing digital commerce logistics in Mozambique operate out in the open, duly contributing to the national economy.
Sources and related reading: