Post Office looking to sell 'non-core' properties to generate revenue

JOHANNESBURG - The cash-strapped South African Post Office (SAPO) was now looking towards selling "non-core properties" and cutting back on expensive property leases to increase revenue which fell sharply in the wake of the Covid-19 pandemic.

SAPO was also looking at increasing income by renting out vacant buildings and relocating to company-owned offices to save on rental costs.

This emerged as the SAPO board and acting CEO Reneilwe Langa briefed Parliament's portfolio committee on communications on Tuesday. SAPO had 641 company-owned and 1, 120 leased buildings with the value of its owned properties totalling R2.8 billion.

Langa said SAPO was severely impacted by the Covid-19 pandemic and lockdown measures.

The return of customers to the branches has been slower than anticipated. Business operations are being normalised by clearing the accumulated backlogs. A key focus has been placed on revenue retention and recovery to bring some financial stability in the short term. She said the turnaround plan was approved in July and would be integrated into the 2021-2022 financial year corporate plan in order to revise the medium-term outlook. "The plan responds to the business correction and recovery over the next 12 months. The positioning of SAPO as an affordable, reliable logistics and delivery company of choice that will attract business from the higher living standards measure (higher income groups). Sustainability and relevance over the long term remains the key priority of the turnaround plan," she said. – NEWS24.