How the SA Post Office makes its money

The South African Post Office is one of the biggest headaches for the South African government, following a R1.5bn loss in the 2015 financial year, and a provisional loss of R1bn in the current year.

Despite the challenges, new Post Office CEO Mark Barnes remains upbeat about the future of the state-owned enterprise.

Barnes sees e-commerce as a new revenue stream for the Post Office, and has initiatives underway to capture a bigger slice of the online shopping logistics pie.

It will not be easy, though. The Post Office still generates most of its revenue from standard postal services – with only 9% of revenue coming from courier services.

Many other courier companies have established relationships with e-commerce players, and the Post Office will need to address its poor reputation and reliability before online shops see it as a viable option.

How the Post Office makes its money

ICASA’s state of the ICT sector in South Africa report shows the SA Post Office’s distribution of revenue for the 12 months ending September 2015.

Post Office Revenue

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How the SA Post Office makes its money