Ramaphosa signs Post Office Bill into law

President Cyril Ramaphosa’s signing into law the South African Post Office (Sapo) SOC Ltd Amendment Bill, has been lauded by experts as a step in the right direction to turn around the financially ailing state-owned enterprise.

Sapo was last year placed under business rescue because it owed R8.7 billion.

Key objectives of Post Office Bill

Key objectives of the new law include:

• Expanding the mandate of Sapo and repurposing SOE infrastructure to provide diversified and increased services;
• Enabling Sapo relevance and sustainability by including services responding to the needs of users and customers;
• Ensuring that the entity is empowered to provide other value-added services, to expand on its revenue generating streams; and
• Enabling the SOE to serve as a digital hub for government and other agency services – for businesses and communities.

The Presidency said Sapo would also be able to serve as a logistics partner to other e-commerce providers, including small enterprises and informal traders.

This would include any business that the SOE may develop, serving users and consumers.

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“The SA Post Office is now empowered to continuously adjust its business model in line with the technological and industry developments in the provision of postal and other services.

“This will enhance the provision of universal services obligation, including the roll-out of service points and the use of third-party infrastructure.

“The law aims to encourage government institutions, including national and provincial departments, components and municipalities, to use the post office infrastructure in the delivery of their services – setting aside certain services to be provided by the entity,” said the Presidency.

Law aims to encourage government institutions

At the core of the objectives is “to eliminate the company’s overreliance on government funding and ensure efficient utilisation of post offices”.

“The new law also addresses governance matters, such as the size of the SA Post Office board, its functions to deal with creditors and skills requirements for board membership,” said the Presidency.

Commenting on the new legislation, Sapo former group CEO Nomkhita Mona said Ramaphosa’s signing of the Bill into law, was “a positive step for the SA Post Office’s future”.

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“Our intention with the Bill was borne out of the clear realisation that the organisation’s survival and sustainability is dependent upon strategic partnerships and an expanded mandate to offer auxiliary services.

“The post office of tomorrow strategy is fully aligned to the Amendment Bill.

“It enables the SA Post Office to roll out its infrastructure as a service strategy wherein the utilisation of its extensive infrastructure can be of greater benefit to the broader community.

Law enables

“The law enables the SA Post Office to overhaul its archaic business model and continue to review it with the changing business environment,” said Mona.

North West University economics professor Waldo Krugell said the amendments and expansion of the Sapo mandate were “steps in the right direction”, but warned of challenges.

“With the right leadership and plan, there is still a need for significant investment in facilities and specifically in IT.”

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