Ghana Post was incorporated by an Act of parliament, Act 505 in August 1995 thereby formally separating it from Ghana Telecom Company. By this Act of incorporation, the corporation was expected to operate on sound commercial lines, and to be self-supporting.
In July 1999, Ghana Postal Services Corporation was converted to a limited liability company. The conversion therefore placed the company together with similar private enterprises in the same legal and regulatory operating environment. It therefore enabled the company to operate successfully in a competitive commercial environment and also widened the objects of the company as it existed under Act 505.
Since Ghana Post is a story of outstanding success, it has tribute to entrepreneurial drive and professional skills of our management and staff. Success has meant tremendous growth of the company itself. Within this past years, Ghana Post has quickly established itself at the forefront of the courier industry in the country.
Development of the postal service started as the Post and Telecommunication (P&T) Department. It became a corporation with the promulgation of NRC Decree 311 of January 1974 and has subsequently gone through changes as a result of the promulgation of these acts: Act 505, August, 1993 and Act 461, July, 1993.
The Decree of Incorporation assigned the corporation the following functions:
- To operate Postal Services and
- To operate national and international Telecommunication Services.
- To operate on sound commercial lines.
The structure drawn for the corporation under this decree provided for a Director-General with responsibilities for postal and telecommunication services respectively.
The separation of the Post and Telecommunication in Ghana is a global trend to address the inefficiencies in the postal sector. The sector is often unreliable and unresponsive to market needs. In spite of these shortcomings, however, the sector represents a significant proportion of Gross Domestic Product (GDP) and also a large employer. It is in view of this that the World Bank’s Private Sector Department (PSD) started promoting worldwide postal reform concepts, especially in developing countries. The prerequisite for this concept rest on the separation of the postal from the telecommunication sector in countries, where they are a single entity.
The idea of separation was therefore bought by the Ghana government and was consequently approved by Parliament. The government, however, accepted as part of the Second Telecommunication Project (STP) to separate the Post from the Telecoms and to restructure both entities with the view to:
- Simulating foreign investment in both entities
- Expanding and improving their networks to provide commercial and social service and
- Improving their managerial capacities to ensure effective and efficient operations and maintenance of their facilities and services.
The Ghana Postal Services Corporation was consequently established as a separate entity by Act 505 of Parliament on August 31, 1995. Towards the eventual separation of the two entities, all assets were also shared.
Ghana Post, as part of the Second Telecommunications Project benefited from a restructuring study undertaken by a consortium of Dutch and Ghanaian consultants, Messrs Nepostel and Lexcroft, financed by the World Bank. The government of Ghana, notwithstanding the restructuring study converted Ghana Post to a limited liability company among other State-Owned Enterprises (SOEs) following the enactment and implementation of the Statutory Corporation’s (Conversion to Companies) act 461, 1993.