7 March 2026
The Federation of Unions of South Africa (FEDUSA) notes with serious concern the indication by Business Rescue
Practitioners of their intention to initiate liquidation proceedings against the South African Post Office (SAPO). This development, communicated to the Minister of Communications and Digital Technologies, Solly Malatsi, signals a critical turning point in the future of a key public institution.
SAPO’s entry into business rescue in July 2023 was intended to stabilise the entity and place it on a sustainable footing. However, the failure to secure adequate funding and implement a credible turnaround strategy has resulted in a deepening crisis. This outcome raises serious questions regarding governance, oversight, and the effectiveness of the business rescue process in preserving strategic state assets.
For over a decade, SAPO has experienced sustained operational and financial decline, despite repeated fiscal support. The erosion of capacity at the Post Office reflects broader structural weaknesses within state-owned enterprises, including policy incoherence, underinvestment in modernisation, and a failure to align public entities with the demands of a changing economic and technological environment.
The potential liquidation of SAPO must be understood not only as an institutional failure but as a socio-economic risk. The Post Office remains a critical access point for millions of South Africans, particularly in rural and peri- urban areas, where it facilitates access to communication services, government transactions, and the distribution of social grants. Its collapse would deepen existing inequalities, further marginalising communities already excluded from the digital economy.
The implications for workers are even more severe. Following the 2023 restructuring process, over 4,300 employees were retrenched. A liquidation scenario would result in further large-scale job losses in an already constrained labour market, exacerbating unemployment and weakening household resilience. At a time when South Africa requires labour-intensive growth and employment protection, such outcomes are untenable.
FEDUSA reiterates its consistent position that economic recovery must be anchored in a developmental state approach that prioritises strategic investment, industrial policy, and the protection of public services. The crisis at SAPO highlights the dangers of prolonged underinvestment and reactive fiscal interventions, rather than sustained, forward-looking reform. It also highlights the need for a coherent digital and logistics strategy that integrates public infrastructure into broader economic development objectives.
In this context, FEDUSA calls for:
• Immediate engagement between government, labour, and relevant stakeholders to explore all viable alternatives to liquidation
• A transparent account of the factors that led to the failure of the business rescue process, including accountability for governance lapses
• A comprehensive plan to reposition SAPO within South Africa’s logistics and digital economy, including potential strategic partnerships that safeguard its public mandate
• Urgent measures to protect affected workers, including income support, redeployment opportunities, and skills transition programmes
The future of the Post Office cannot be considered in isolation from the broader economic trajectory of the country.
Decisions taken at this juncture must reflect a commitment to inclusive growth, public service delivery, and the protection of workers.
FEDUSA will continue to engage all relevant stakeholders to ensure that the interests of workers and the public are safeguarded.
END.