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SA Post Office To Become A Logistics Partner For E-Commerce Providers

Gugu LourieBy 04 Mins Read
Post Office
The South African Post Office is bleeding jobs. Archive photo: Ashraf Hendricks

The Post Office aims to serve as a logistics partner for e-commerce providers, including small enterprises and informal traders, while expanding its services to meet future business needs for users and consumers.

On Wednesday, President Cyril Ramaphosa signed the South African Post Office SOC Ltd Amendment Bill into law. The legislation expands the mandate of the Post Office, repurposing its infrastructure to deliver diversified and enhanced services.

The new law empowers the Post Office to go beyond basic postal services by offering value-added services that boost its revenue streams and ensure its relevance and sustainability.

Under the amended mandate, the Post Office will serve as a logistics partner for e-commerce providers, including small enterprises and informal traders. It will also act as a hub for government and agency services, as well as a digital hub for businesses and communities.

Additionally, the law equips the Post Office to adapt its business model to technological advancements and industry trends. This includes enhancing its Universal Services Obligation by rolling out service points and leveraging third-party infrastructure.

Government institutions, including national and provincial departments, government components, and municipalities, are encouraged to utilise Post Office infrastructure for service delivery. Certain services will be reserved for the Post Office to reduce its dependence on government funding and improve efficiency.

The legislation also addresses governance matters, such as adjusting the size of the Board, specifying functions to handle creditors, and setting skills requirements for board members.

These changes position the Post Office to better serve South Africans while ensuring its long-term sustainability in a rapidly evolving industry.

Telkom Summer FTTH 50 25 728x90 1
Telkom Summer FTTH 50 25 728x90 1
Telkom Summer FTTH 50 25 728x90 1

GUGU LOURIE: How the wisdom of the East can fix the Post Office

Huawei CEO Ren Zhengfei preaches compromise as a universal panacea – it might be what we need to ease the Post Office into the e-commerce era

 BL Premium
22 October 2023 – 06:43
by GUGU LOURIE
The South African Post Office is one of our most dysfunctional SOEs, but a partnership with such players as Amazon and Takealot could breathe new life into it, says the author.

The South African Post Office is one of our most dysfunctional SOEs, but a partnership with such players as Amazon and Takealot could breathe new life into it, says the author.
Image: Freddy Mavunda

The founder of Huawei, Ren Zhengfei, says compromise is a practical and adaptable law of the jungle.

“The wise ones in the jungle of humanity are ready to accept or seek compromise when necessary,” says Ren.

“One survives on reason rather than on impulse, after all. Compromise is an agreement reached under a certain circumstance. It is not always the best solution, perhaps, but it is the best option before the real best option appears. It has a lot of benefits.”

Considering that Huawei has grown to be a global company that has pioneered the development of technology that is shaping our societies, Ren’s wise words are worth paying attention to.

Tian Tao, David De Cremer and Wu Chunbo, the authors of Huawei: Leadership, Culture, and Connectivity, write that Ren said compromise does not mean giving up principles or making unconditional concessions.

“A wise compromise is a fair exchange. To achieve our most important goals, we can compromise on minor goals,” they quote Ren as saying. “Such a compromise is not a matter of violating our bottom line, but making concessions to gain an advantage, and to achieve our goals by means of fair exchange.”

In contemplating the precarious state of the South African Post Office, I find myself recalling the wisdom of Ren,  which emphasises the importance of compromise and fair exchange.

The Post Office is in a bind. This vital state-owned entity, already teetering on the edge of collapse, has been further crippled by internal malpractices, resulting in dismissals, arrests, and allegations of fraud and theft.

It has outstanding liabilities of R9.5bn and numerous post offices around the country have closed; transformation involving  compromise  is imperative.

Selling the Post Office is not an option in the eyes of the current administration. A compromise that ensures a fair exchange for the public, who essentially serve as shareholders of the Post Office, has to be found.

This compromise should be rooted in the creation of value for the Post Office, especially in the face of the e-commerce revolution, which is about to step up a gear with  the arrival in South Africa of global giant Amazon.

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