Government25.02.2025

Post Office looking for people with e-commerce experience

Communications Minister Solly Malatsi has issued an invitation for candidates to apply for non-executive positions on the South African Post Office’s (Sapo’s) board, with one of the top requirements being e-commerce experience.

The Post Office has been eyeing the online shopping space for a while. Management at its KwaZulu-Natal offices recently said focusing on online shopping and protecting its small parcel monopoly would be critical to its survival.

Malatsi’s invitation to apply to Sapo’s board lists several experience requirements, some of which relate to the focus on online shopping.

“To fulfil the oversight mandate and advance Sapo’s objectives, candidates must bring a diverse range of skills, knowledge, and experience essential for overseeing a state-owned institution,” the invitation reads.

“Candidates should demonstrate a leadership of integrity, transparency, responsibility, accountability, fairness and competence.”

The appointments require knowledge, skills, and experience in the following areas:

  • e-Commerce and Digital Postal Services Management
  • Logistics Management
  • Information Technology (IT) and ICTs
  • Corporate Governance
  • Risk Management
  • Financial management, corporate finance and financial governance (accounting, reporting and auditing)
  • Transactional advisory
  • Legal and Corporate Law
  • Business Strategy and innovation
  • Human Resource Management
  • Project Management
  • Transformation for diversity and equity

Each candidate must also have a minimum of five years of board experience and at least eight years in an executive senior management role.

They must also hold a bachelor’s degree, while a postgraduate qualification in logistics, business strategy and financial management or related environment and public sector governance is considered an advantage.

“Preference will be given to candidates who enhance diversity in skills, gender, youth, and disability representation. People with disabilities are encouraged to apply,” the invitation reads.

Shortlisted candidates will undergo an assessment in line with Bank Act requirements, as well as security clearance and disclosure of business interests.

The Post Office has experienced significant financial difficulty for more than a decade. It last posted a profit in 2013, reported losses of over R19 billion, and accumulated substantial debt since.

Solly Malatsi, South Africa’s Minister of Communications and Digital Technologies

Portfolio Committee member for Communications and Digital Technologies Sibongiseni Vilakaza recently conducted an oversight visit to the entity’s KwaZulu-Natal offices, where management emphasised the importance of capitalising on e-commerce.

“There was an animated discussion on income generation, with many in attendance believing that it is possible for Sapo to generate sufficient income to sustain itself,” Vilakazi wrote in his report.

“Securing the legislated advantages would help improve income.”

The local Post Office management said South Africa should protect the institution’s legislated monopoly over packages under 1kg, adding that Sapo should focus on e-commerce deliveries like other postal services.

The Post Office has repeatedly argued for its sole right to deliver packages under 1kg, as allowed by a 25-year licence issued under the Postal Service Act of 1998, which expired in 2023 and temporarily extended.

However, its appalling delivery fulfilment record and reputation for items going missing forced South Africans to turn to alternative courier companies, such as Postnet.

This resulted in the Post Office lodging a complaint against Postnet with the Independent Communications Authority of South Africa (Icasa) in 2018.

The regulator ordered Postnet to cease small parcel deliveries in early 2020. However, the courier secured an interdict, ensuring it could continue to offer the service.

While the Post Office and Icasa filed dispute papers defending their stance, the case has remained in limbo since Sapo’s provisional liquidation in 2023.

The liquidation was soon overturned and the Post Office placed into business rescue.

Malatsi believes the Post Office should prioritise building public trust over protecting the state-sanctioned monopoly.

“The preferred outcome is for Sapo to get back on its feet by regaining the public’s trust, including public entities, not through compulsory use of its services,” the Minister stated.

This is in stark contrast to the Portfolio Committee on Communications’ stance, which previously called for the department to renew the monopoly.

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