Post Office financial losses underscore the need for review of government ownership

Please find an attached soundbite by Solly Malatsi MP.

The dire financial state of the South African Post Office (SAPO) continues to inflict massive inconvenience to millions of citizens who rely on it to access their private mail, social grants and transfer parcels.

The latest annual report of the South African Post Office shows that it suffered a loss of R2.3 billion for the 2020/21 financial year, which marked an increase of R469 million compared to the previous financial year.

Its revenue for the same period declined by R1.2 billion symbolising the public’s increasing vote of no confidence in doing business with the Post Office.

While the Post Office’s massive footprint across the country, more so in poor areas, means it has a far broader reach than its private competitors, years of mismanagement and government under-investment, have relegated it to the brink of collapse.

Post Office branches across the country are closing at an alarming rate leaving millions of customers frustrated with no viable alternative in their communities to access postal, courier and social grant services.

The only way to save the Post Office from further collapse beyond recovery is to review government’s sole ownership of the entity by making provision for private investment to help revive this important institution.