Question NW21 to the Minister of Communications and Digital Technologies
06 March 2024 - NW21
Cebekhulu, Inkosi RN to ask the Minister of Communications and Digital Technologies
Whether he has given any consideration to positioning what is left of the SA Post Office’s (SAPO) postal network as contributors to the country’s e-commerce space, given that business rescue practitioners have stated that SAPO is in need of investment in technology, considering that his Department has consistently remained behind the Republic’s digital evolution curve and the burgeoning e-commerce space; if not, why not; if so, what are the relevant details?
Reply:
I have been informed by the SAPO as follows:
SAPO’s logistics strategy, currently in development, will initially stabilise parcel delivery and modernise this business segment over time. The strategy will also enhance the organisation’s logistics skills and management capabilities.
A specific focus of SAPO’s broader strategy is South Africa’s growing e-commerce market as outlined in the entity’s Business Rescue Plan (BRP) (sec 18.5.5.4.2.1, pg. 63). To this end, the rescue plan aims to position the SAPO as a preferred service provider to e-Commerce retailers by strategically investing in the organisation’s depot network, transport fleet and logistics technologies. Apart from strengthening its domestic delivery standards, SAPO will work with its international peers to improve international shipping to and from South Africa.
However, due to the highly competitive nature of the e-Commerce market, SAPO will leverage strategic partnerships to enhance its competitiveness in this sector. Envisaged partnerships include logistics, technology, warehousing, infrastructure and e-commerce as well as industry expertise.
SAPO is cognisant of the fact that it has a low trust deficit within the courier sector, and with commitment from management and the support of government stakeholders, it is anticipated that the entity will return to being a leading courier and logistics company within the next three years.
Thank you