Authorities is ready to evaluation the Submit Workplace’s monopoly over delivering sub-1kg objects, a rule that’s already extensively ignored by the logistics trade.
The division of communications & digital applied sciences has invited public participation in a deliberate evaluation of “reserved postal companies” as outlined within the Postal Providers Act. These are the companies that solely the Submit Workplace has a authorized proper to offer in South Africa.
The rationale behind reserving sure companies is to guard revenues for the Submit Workplace, offering the bankrupt state-owned entity with a monopoly that can assist subsidise its mandate to rural and outlying communities even when it’s not worthwhile for it to take action.
The Submit Workplace’s monopoly on sub-1kg parcels, though extensively ignored, is likely one of the monopoly companies that can kind a part of the evaluation.
The communications division this week launched a dialogue doc to help stakeholders earlier than their inputs are submitted to the division.
“The aim of this dialogue doc is to solicit feedback and inputs from stakeholders on the evaluation of the Submit Workplace’s unique proper to offer reserved companies and the feasibility of liberalising the postal sector within the nation,” mentioned the doc.
“This analysis is subsequently geared toward exploring the relevance and effectiveness of exclusivity as a funding mechanism to make sure common postal companies and discover the way it must be outlined and handled given the altering surroundings, market and buyer dynamics, socioeconomic contributions, and doable coverage adjustments.”
Monopoly prolonged
The Submit Workplace’s monopoly on the supply of sub-1kg parcels was prolonged to the top of April 2025 by former communications minister Mondli Gungubele final 12 months. These parcels are outlined as follows:
- Size: 456mm
- Width: 324mm
- Thickness: 100mm
Cylinders having a most size of 458mm and 100mm thickness and a mass of as much as 1kg are additionally thought to be “letters”.
Different companies to be reviewed embody the conveyance of all letters, postcards, printed matter, small parcels and packages; the issuing and sale of postage stamps; and the availability of roadside assortment and handle containers.
Learn: Submit Workplace will get emergency short-term bailout
The evaluation comes at a time when the way forward for the Submit Workplace hangs within the steadiness. Having been in enterprise rescue – a type of chapter safety – since July 2023, nationwide treasury final month allotted the embattled entity with a “virement” of R150-million.
Khusela Diko, chair of the parliamentary portfolio committee on communications, mentioned the virement was merely not sufficient to make sure the Submit Workplace survives for lengthy.
“The funding is just too little to make a significant impression because it solely sustains the operations of Sapo (the Submit Workplace) for one extra month and doesn’t go far sufficient to deal with the challenges it’s going through,” Diko mentioned in a press release on the time.
Final September, enterprise rescue practitioners Anoosh Rooplal and Juanita Damons advised parliament that the embattled organisation would don’t have any different however to be positioned into liquidation ought to a R3.8-billion bailout not be acquired by final November.
The state-owned firm’s destiny appeared all however sealed when nationwide treasury excluded the proposed bailout from the medium-term funds coverage outlook assertion in October, with finance minister Enoch Godongwana encouraging the division of communications to “discover the cash” to help the entity. Little point out was product of the Submit Workplace in Wednesday’s funds paperwork. – © 2025 NewsCentral Media
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