The Department of Communications and Digital Technologies is looking to change the South African Post Office’s (SAPO) mandate, which will enable the entity to expand its services and offerings.
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The goal of the South African Post Office Amendment Bill (2022) is to repurpose the SAPO infrastructure. The proposed laws will revise its governance structure by establishing, appointing and detailing the functions of a Stamp Advisory Committee, Businesstech reports.
Some of the other proposed changes include:
- That SAPO will provide logistics and e-commerce services, and serve as a logistics partner for e-commerce, informal traders, SMMEs and other logistics players;
- That SAPO will serve as a digital hub for businesses and communities;
- That post offices and related SAPO service points will provide services based on the needs of a certain area, and ensure that its retail offering and services are effectively utilised. Fees will differ depending on services and areas, subject to the approval of the Authority.
In addition, the Post Office will be able to continuously adjust its business model to stay abreast of technology- and industry developments.
The proposed bill comes amid the state-owned entity’s dire economic straits after it was placed under provisional liquidation last month. SAPO has been losing millions in taxpayer money each year since 2013, causing it to reduce its workforce and close branches.
Currently, its liabilities outweigh its assets by R4 billion, with a looming debt of R8 billion. After years of bailouts and even more bailout requests, the National Treasury announced a R2.6 billion relief from government coffers in its latest 2023 Budget.
In the meantime, some 6 000 people (about 40% of positions) have been retrenched as the wage bill comprises 68% of its costs.
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Picture: Post Office South Africa / Facebook