Treasury support is being sought in forming a task team to pursue private financial and operational partners for the South African Post Office (SAPO).
“This will enable serious consideration of privatisation scenarios as a preferential option to further funding from the fiscus,” says Solly Malatsi, minister of communications and digital technologies. “The goal is to modernise SAPO’s operations, drive innovation, and increase its competitiveness.”
Malatsi points out that any allocation of previously committed funds to the Post Office will be based on a revised business plan by the business rescue practitioners that meets Treasury’s expectations. “In addition, we will work to ensure that there is accountability for failure to meet previous conditions that were imposed for the financial support the Post Office received from the fiscus.”
He adds that the Post Office’s current exclusive license for reserved postal services should be reconsidered in line with making the institution more innovative and competitive.
“The focus is on fostering an open, competitive environment that promotes innovation and service excellence. Postal services are transitioning away from monopolies,” he says. “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.”
Malatsi hopes to avoid retrenchments or withholding of salaries. “SAPO is already facing difficulties in attracting talent and maintaining employee morale. There has already been necessary but aggressive downsizing. Now, a motivated and stable workforce is essential to the success of any recovery plan.”
The Universal Postal Union is an important resource with regards to postal service reform, he believes. “I will ensure that we are drawing in and make full use of available expertise and global best practice.”
Malatsi says the Post Office is well placed to leverage integration with other state entities for enhanced services to the public, as well as providing affordable postal, courier, and digital services to otherwise excluded or underserved communities, and the department will explore all avenues to make it financially sustainable.