Even government refuses to use the Post Office

South Africa launched the government-initiated Shop Proudly SA online store on 1 July 2025, and it is not using the Post Office as a logistics partner.

Following the Department of Trade, Industry, and Competition’s (DTIC’s) announcement regarding the online store’s launch, MyBroadband asked Proudly SA if it is using the Post Office to deliver orders.

According to feedback from Proudly SA, the store’s logistics partners are Bob Go, ParcelNinja, and Pargo — all proven companies with solid delivery track records.

Minister of Trade, Industry, and Competition, Parks Tau, oversaw the launch of two government-initiated e-commerce platforms on 1 July 2025, hosted by Proudly SA.

According to a department statement, the event saw the government launch the business-to-consumer platform Shop Proudly SA and a business-to-business portal.

The latter has been dubbed the Market Access Platform (MAP), and its launch comes in response to calls from large corporations to expand access to locally made products.

“The two platforms are aimed at transforming and ensuring the success of the e-commerce industry in South Africa,” the DTIC said.

Tau believes these platforms will help boost support for small, medium, and micro enterprises and locally manufactured goods and services.

He said the online platforms will provide seamless and centralised portals, making it easier for consumers and procurement offices to source locally-manufactured products and services.

Tau added that it will help South African businesses meet localisation targets and enable manufacturers to claw back some of the ground they lost to cheaper imports.

“Over 1,700 locally made products will be housed in the platforms covering all sectors in South Africa. There will be something for everyone,” the minister said.

The department said the move will support further job creation in South Africa and build resilience in the South African economy.

Reviewing the Post Office’s small parcel delivery monopoly

The South African Post Office (SAPO) was granted a 25-year exclusivity period on certain postal services, including the delivery of parcels under 1kg, under the Postal Service Act of 1998, and it has been extended several times.

However, Minister of the Department of Communications and Digital Technologies, Solly Malatsi, recently announced his intention to review the state-owned entity’s monopoly.

In March 2025, the minister published a notice in the Government Gazette announcing the planned review and invited interested persons to submit public comments within 30 days of its publication.

“The Minister of Communications and Digital Technologies intends to review the period during which no person other than the South African Post Office may provide a reserved postal service,” the notice said.

“Legislative framework requires SAPO to provide such services universally to every citizen in the country, regardless of whether the Post Office derives financial benefit or not.”

Reserved postal services, as per schedule one of the Postal Services Act, include:

• Conveyance of all letters, postcards, printed matter, small parcels, packages, or wrappers and other postal articles weighing up to 1kg;
• Issuing and selling postage stamps; and,
• Providing roadside collection and address boxes.

The general consensus from management at the Post Office’s KwaZulu-Natal office was that the entity could generate enough income to sustain itself, provided it protects the legislated monopoly.

This was discussed during Portfolio Committee for Communications and Digital Technologies member Sibongiseni Vilakazi’s oversight visit to the Post Office’s headquarters in the province.

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

“Securing the legislative advantages would help improve income.”