Post Office to improve revenue as branch opens

THE South African Post Office (SAPO) says it is working on a turnaround strategy to improve its services and income streams.

This follows the reopening of 27 branches across the country, including eSikhaleni, which had been forced to halt operations amid talks with landlords over outstanding payments for rent and services.

eSikhaleni Post Office was closed in February along with the branch in Richards Bay Central Business District. It is alleged the branches owed more than R900 000 in rent, electricity and services.

Although the Richards Bay post office branch reopened its doors in March, eSkihaleni remained closed and only resumed operations this week.

Welcoming the latest developments, Minister of Communications and Digital Technologies, Stella NdabeniAbrahams said they are working with the entity to ensure a positive shift.

'The Covid-19 pandemic and subsequent economic downturn had a marked effect on the revenues of the Post Office.

'The Post Office has implemented long-term initiatives to diversify its income.

'These have started to show results, and have identified quick solutions that will improve its income in the short-term,’ said Ndabeni-Abrahams.

SAPO Group CEO, Nomkhita Mona said part of the entity’s strategy is the digitisation of its processes, and participation in the courier space.

'We continue to engage

SA Post Office’s creditors to acknowledge our indebtedness and willingness to honour the commitments. Equally, debt collection is a focus area.

'In the long term, we are confident that we have the opportunity to build a world class, commercially viable postal service - with no heavy reliance on the national fiscus.

'However, in the short to medium term, we fully expect that the national government will support SA Post Office’s efforts in dealing with these legacy issues,' said Mona.