‘The situation is dire’: DA weighs in on closed Post Office branches

More than 300 South African Post Office (Sapo) branches have shut down in the past three years.

This was revealed by the department of communications and digital technologies in written answers to parliament.

The department said 22 branches closed in the 2020/21 financial year and 146 in 2021/22. In the 2022/23 financial year, 122 branches were closed and 24 were shut down in April. This gives a total of 314 branches that have been closed.

DA MP Natasha Mazzone described the closures as dire and blamed the government for branches in local communities becoming ghost spaces.   

“This shocking development not only undermines the integrity of our national postal service but also affects millions of people who rely on local branches to access essential services such as receiving their Sassa grants.

“If this trend continues, individuals may be forced to travel long distances to the nearest Sassa outlet, worsening their already challenging circumstances,” she said.

Mazzone said the government needed to consider privatising aspects of the state entity.

“This crucial step will not only safeguard Sapo’s survival as the national postal service but also guarantee the timely payment of salaries, medical aid and pensions to its dedicated employees.”

She said the party wanted to work with the government and civil organisations to “save” the Post Office.

“Together, let us develop a well-defined and actionable plan that does not burden taxpayers with repeated bailouts. We must save our post offices, protect the interests of our citizens and ensure a prosperous future for all.”

Despite several years of money struggles by Sapo, communications minister Mondli Gungubele has been confident the entity can be saved from collapse of operations nationally.

According to the Sapo, it last made profits in 2004 and the decline in its revenue started in 2006.

Gungubele, speaking on the entity last month, blamed evolving market factors and technological advancements for the losses. 

“Revenue has reduced from R3.4bn in 2015 to R2.6bn in 2022. This trend has posed a significant threat to the sustainability of the SA Post Office in its historical form.

“Government has over the years embarked on several interventions to get the SA Post Office back on track. These include a total of R7.3bn cash injection between 2016 and 2019, partnerships with SITA and Post Bank on infrastructure development and sourcing of expertise from the private sector,” he said.

Gungubele said the department management was working to save the entity and ensure business continuity.

“The government's main objective is to ensure that this entity is repositioned, modernised, and continues to serve the millions of South Africans it has been serving over the past 200 years,” he said.

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