South Africa: Minister Seeks Treasury Support To Pursue Private Partners For Post Office

Minister of Communications and Digital Technologies Solly Malatsi has sought National Treasury’s support 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.

“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.

“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,” the Minister said on Wednesday.

Malatsi said the goal is to modernise SAPO’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.

“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.

“It is with the goal of an innovative and competitive Post Office, that it would be strategic to look into its current exclusive license on reserved postal services,” the Minister said.

He said the focus is on fostering an open, competitive environment that promotes innovation and service excellence.

“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.

“Furthermore, retrenchments or withholding of salaries should be avoided, as 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.

“Lastly, the Universal Postal Union is an important resource with regards to postal service reform. I will ensure that we are drawing in and make full use of available expertise and global best practice,” the Minister said.