SA Post Office thrown R381 million lifeline
In a move to preserve jobs and restore public confidence, Minister of Employment and Labour, Nomakhosazana Meth, has confirmed the implementation of a R381 million financial lifeline for the embattled South African Post Office (SAPO).
The funding aims to stabilise the organisation as it continues its business rescue journey.
The funding comes through the Temporary Employer-Employee Relief Scheme (TERS), administered by the Unemployment Insurance Fund (UIF).
A Memorandum of Agreement (MOA) has been signed between SAPO and UIF to disburse the funds over six months, offering temporary relief to 6 000 workers while a long-term turnaround strategy is executed.
'This is a bold and necessary step to protect workers and restore confidence in our public institutions,' said Minister Meth.
'TERS is not just a financial mechanism – it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind.'
The funds will be disbursed in monthly tranches via a dedicated TERS bank account, with strict auditing, governance, and compliance conditions in place.
The SA Post Office, founded in 1792, has endured years of financial decline, culminating in a R2.17 billion operating loss in 2024.
The company was placed under provisional liquidation in February 2023, but later rescued by court-approved business rescue practitioners (BRPs).
Since then, SAPO has implemented aggressive restructuring measures, including: Closure of 366 branches , leaving just over 650 operational
, leaving just over 650 operational Retrenchment of more than 4 300 employees in April and May 2024
in April and May 2024 Ongoing efforts to reduce losses and revive profitability by 2028
In addition to the TERS lifeline, the National Treasury granted a R2.4 billion bailout in the 2023/24 financial year to fund retrenchments, creditor settlements, and basic operations.
However, the BRPs warned Parliament earlier this year that SAPO still requires an additional R3.8 billion to successfully complete its turnaround and restructuring plan.
The TERS funding was approved following a rigorous review by the TERS Single Adjudication Committee, which includes stakeholders from the CCMA, Department of Higher Education, and Department of Small Business Development.
SAPO is now required to: Submit regular financial and progress reports
Uphold transparency and proper accounting
Demonstrate tangible progress on its revitalisation plan
Despite its financial woes, SAPO's corporate plan through to 2030 indicates optimism.
The organisation projects progressive reductions in losses, aiming to return to profitability by 2028.
This latest intervention underscores the government's commitment to job preservation and SOE reform, even as tough fiscal conditions demand accountability and restructuring. When last did you step into a Post Office branch?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
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