Ramaphosa assents to new law that allows SAPO to expand services, repurpose infrastructure
The new law aims to eliminate the post office's overreliance on government funding, having not turned a profit in a decade and to make more efficient use of its offices.
The South African Post Office. Picture: Ashraf Hendricks/GroundUp
CAPE TOWN - As the South African Post Office (SAPO) teeters on the brink of collapse, the president has assented to a new law that will allow it to expand its services and repurpose its infrastructure.
On Wednesday, Communications Minister Solly Malatsi said he had met with business rescue practitioners as part of ongoing talks to determine the future of the historical institution.
COSATU said that the new South African Post Office Amendment Act would provide for a revitalised post office geared towards ordinary customers, particularly the poor and the marginalised.
The amended legislation was introduced to Parliament last year to pave the way for the post office to offer new services that will allow it to generate more revenue.
In October, the communications minister told the parliamentary portfolio committee that private partners are being sought to save the post office.
The new law aims to eliminate the post office's overreliance on government funding, having not turned a profit in a decade and to make more efficient use of its offices.
Government institutions across all spheres are now being encouraged to use post office infrastructure to deliver their services and to set aside certain services for the post office to provide.
COSATU spokesperson, Matthew Parks, said that government must honour a budget provision of more than R3 billion for the post office to improve its liquidity to pay workers' salaries and service providers.
"It needs to be accompanied by a clear turnaround plan that ensures the post office is stabilised, repositioned and set on a sustainable path. This must be based upon urgently expanding the range of products it offers consumers, including access to courier services, SASSA payments and other government services."
The new law will enable the post office to serve as a hub for government services and as a digital hub for businesses and communities.
It will also allow the post office to serve as a logistics partner to other e-commerce providers, including small enterprises and informal traders.