With the South African Post Office (SAPO) on the verge of collapse, Minister of Communications and Digital Technologies, Solly Malatsi, has called on Treasury to assist in keeping the institution’s doors open.
This is as cash reserves for the SAPO are expected to run dry this month. The Post Office, which has undergone severe financial strain in recent years, reportedly needs an additional R3,8 billion to remain operational.
“As the newly appointed Minister of Communications and Digital Technologies, I am committed to exhausting all reasonable avenues to make the Post Office financially sustainable.”
In a statement, Malatsi expressed the importance of accountability. He noted that any further financial support from the state would depend on SAPO’s ability to meet revised business plans and conditions set by Treasury.
“We cannot continue to fund SAPO’s operations without a clear path to recovery. The goal is to modernise the Post Office and drive it toward greater innovation.”
He says this is aimed at turning SAPO into a more competitive and sustainable institution, by leaning on private partnerships as a means to bolster its services.
With that said, Malasti has requested that Treasury establish a task team, aimed at securing financial and operational partners from the private sector.
Privatisation is also being considered, should private partners be acquired.
And while this will mark a major shift from the institution’s role as a government-owned entity, Malatsi believes this will allow for the SAPO operations to be modernised.
“The focus is on fostering an open, competitive environment that promotes innovation and service excellence.”
The Post Office’s business rescue process, which began in 2023, has led to “aggressive downsizing”, including the retrenchment of thousands of workers and the closure of hundreds of branches. But despite these drastic measures, the organisation’s financial woes persisted.
As such, Malatsi stressed that further retrenchments or withholding salaries should be avoided.
“SAPO is already facing difficulties in attracting talent and maintaining employee morale… Now, a motivated and stable workforce is essential to the success of any recovery plan.”
He says he is looking to the Universal Postal Union for guidance on global best practices for postal service reform.
“The preferred outcome is for SAPO to get back on its feet by regaining the public’s trust, including public entities, not through compulsory use of its services.”
