The South African Post Office (Sapo) management in KwaZulu-Natal believes it can achieve financial sustainability by retaining its monopoly on deliveries under 1kg and capitalizing on the growth of online shopping. Sapo officials argue that the government should enforce its exclusive right to deliver packages weighing under 1kg, as stipulated by a 25-year license granted in 1998. The management team also advocates for government departments and municipalities to exclusively use Sapo for their postal needs. While Communications Minister Solly Malatsi suggests that Sapo should focus on rebuilding public trust instead of enforcing a monopoly, the Portfolio Committee for Communications and Digital Technologies supports maintaining the exclusive license.
South African Post Office management in KwaZulu-Natal believes the state-owned company can generate sufficient income to sustain itself if it protects its monopoly on deliveries under 1kg and focuses on online shopping.
“There was an animated discussion on income generation, with many in attendance believing that it is possible for Sapo to generate sufficient income to sustain itself,” he wrote in his report.In this regard, Sapo’s management team in KwaZulu-Natal says South Africa must protect the Post Office’s legislated monopoly for packages less than 1kg.
“Currently, there are too few services to generate significant revenue,” Vilakazi wrote in his report.Given the outcome of Vilakazi’s visit to the Durban Central Post Office, MyBroadband asked Sapo’s business rescue practitioners about the importance of its monopoly over deliveries under 1kg.The Post Office has been experiencing significant financial difficulty for a decade, having last posted a profit in 2013.
However, the Portfolio Committee for Communications and Digital Technologies believes Malatsi’s department must renew the exclusive licence., with Diko publishing a media statement strongly opposing the Minister’s plan to abolish the licence.
SOUTH AFRICAN POST OFFICE MONOPOLY DELIVERIES ONLINE SHOPPING FINANCIAL SUSTAINABILITY
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South African Post Office's Business Rescue Needs Urgent Conclusion, Says Committee ChairThe South African Post Office's business rescue process, initiated in 2023 to address financial instability, faces scrutiny for its lack of progress and a defined exit strategy. Khusela Diko, chairperson of the communications and digital technologies committee, urges swift action and emphasizes the need for a clear plan to ensure the entity's future viability.
Read more »
Rwanda Denounces South Africa Over DRC ConflictRwandan President Paul Kagame has refuted South Africa's portrayal of events in the Democratic Republic of Congo (DRC), accusing the South African government of supporting armed groups and hindering peace efforts. Kagame condemned the South African National Defence Force's (SANDF) involvement in the conflict, claiming it was aiding the Democratic Forces for the Liberation of Rwanda (DFLR) and exacerbating tensions in the region. He disputed South African claims that the Rwandan Defence Force (RDF) and M23 rebels attacked the SANDF, asserting that the Democratic Forces for the Liberation of Rwanda (DFLR) were responsible for the deaths of 13 South African soldiers.
Read more »
Parliament Committee to Continue Investigating SARU and SAFA FinancesSouth Africa's Parliament sport, arts and culture committee vows to continue investigating the financial practices and management of the South African Rugby Union (SARU) and the South African Football Association (SAFA).
Read more »
South Africans Stuck Abroad After Job Disputes, Authorities Urge CautionThe South African Department of International Relations warns citizens seeking employment abroad to contact authorities before departing to avoid similar situations. This follows the case of three South African women stranded in Oman after their employers confiscated their documents. The department is assisting two of the women through its embassy in Saudi Arabia due to the lack of a South African office in Oman. Monyela highlighted the prevalence of job-related issues abroad, including scams and unpaid salaries, urging South Africans to exercise caution and seek guidance before accepting foreign employment.
Read more »
Rwanda's Kagame: Ready for Confrontation with South Africa if NecessaryRwandan President Paul Kagame has asserted that Rwanda is prepared for a confrontation with South Africa should the situation necessitate it. Kagame's statement follows the recent escalation of fighting in the Democratic Republic of Congo (DRC), where 13 South African soldiers were killed. Kagame claims South Africa's military activities in the DRC were not properly disclosed and that Ramaphosa requested logistical support while simultaneously acknowledging South Africa's peace efforts. He further criticizes South Africa's role as a peacemaker and mediator, warning of a forceful response if South Africa seeks confrontation.
Read more »
South African Man Arrested for Alleged Terror FinancingZiyadh Hoorzook, a 35-year-old South African national, was arrested for allegedly financing terror activities. Police investigations revealed suspicious transactions linked to Bitcoin transfers and alleged support for an organization involved in weapons activities and financial aid.
Read more »