Communication minister seeks private partnerships to save SA Post Office

Communications and Digital Technologies Minister Solly Malatsi is requesting support from Treasury to pursue private partnerships for the South African Post Office (SAPO).

The minister asked Treasury for help in setting up a task team to look for private financial and operational partners for the Post Office.

He said this will make it possible to give serious thought to privatisation scenarios as a better option than additional fiscus investment.

‘Day Zero’ this month

This comes after it was revealed in a Portfolio Committee on Communications and Digital Technologies last month that the Post Office was projected to run out of funds as early as this month, potentially forcing the entity back into liquidation.

The Democratic Alliance (DA) called on Malatsi to take immediate and decisive action to prevent SAPO from reaching Day Zero.

“The DA believes that the only viable path for SAPO’s survival lies in the private sector, which possesses the necessary expertise, funding, and infrastructure to manage and rehabilitate the institution,” said DA spokesperson on Communications and Digital Technologies Tsholofelo Bodlani on 4 September.

ALSO READ: ‘Day Zero’: SA Post Office warns of liquidation and job losses

In Malatsi’s announcement on Wednesday, the minister said the goal of seeking Treasury’s support is to modernise the Post Office’s operations, drive innovation and increase its competitiveness.

“It’s clear 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,” the minister said.

“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.”

Modernising and driving innovation

Malatsi added that it would be strategic to look into the Post Office’s current exclusive license on reserved postal services.

He said the department is focused on fostering an open, competitive environment.

“This comes at a time when postal services are transitioning away from monopolies. 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,” the minister said.

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The embattled Post Office is already facing issues with attracting talent and maintaining employee morale after it was aggressively downsized.

Therefore, the department said retrenchments or withholding of salaries should be avoided.

Malatsi added that because the Universal Postal Union is an important resource, he will ensure that the department is drawing in and making full use of available expertise and global best practices.

Making the Post Office financially sustainable

“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,” he said.

“It is uniquely 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.”