Nothando Magudulela

This is according to the Consumer Advisory Panel, a body established by the Independent Communications Authority of South Africa (ICASA) to address consumer-related issues in broadcasting, telecommunications, and postal services.

SAPO is seeking a R1.6 billion ($89 548 million) cash injection from the National Treasury to stay afloat.  

During public hearings held online this week regarding the Draft Regulations on the Conveyance of Mail, the panel highlighted the financial, logistical, and operational challenges plaguing SAPO. ICASA had published the draft regulations in September, aiming to improve mail delivery reliability in South Africa.  

The new regulations propose a framework to enhance postal services, including guidelines for packaging, delivery times, and compensation for lost or damaged mail.

Jack Tlokana, a member of the ICASA Consumer Advisory Panel, emphasised the urgency of collaboration to save SAPO.  

“SAPO is on the verge of collapse, and it is unclear how long the entity will continue delivering courier and postal services,” said Tlokana. “It would be prudent for ICASA, the Department of Communications and Digital Technologies, and the rescue team to collaborate on solutions to restore SAPO and prevent its closure.”  

SAPO is also facing stiff competition from private courier services, which have taken a significant share of its business. At the same time, the growth of e-commerce has introduced new challenges for the mail and courier sector, including a high rate of hijackings and robberies.  

Garry Marshall from the South African Express Parcel Association explained, “E-commerce accounts for about 4.5% of total retail sales and is growing at 20–30%. However, the increase in courier vehicles carrying valuable goods, such as electronics and clothing, has made them attractive targets for criminals. While many incidents are classified as robberies rather than hijackings, they still pose a significant threat.”  

The Consumer Advisory Panel has recommended that mail conveyance companies collaborate with law enforcement agencies to address theft and hijacking. It also urged companies to adhere to legal hiring practices and work with the Department of Labour and Employment, the Department of Home Affairs, and law enforcement to curb the employment of undocumented foreigners.  

The regulations are expected to modernise and streamline the regulatory framework governing mail transportation, aligning it with industry advancements and addressing critical challenges in the sector.  

--ChannelAfrica--