The South African Post Office expects to lose about R391-million in 2026/2027, even after it gets public funding. It is asking government for about R2.2-billion in new money over the next three years, TechCentral reported.
The Post Office said it needs the money to keep operating and to start rebuilding its network. The figures are in its corporate plan for 2026/2027.
The plan was presented to the National Council of Provinces select committee on economic development and trade. Acting CEO Fathima Gany told the committee that the Post Office needed working capital. She said its efforts to find new income were not moving fast enough, according to the Parliamentary Monitoring Group.
In its budget submission lodged in June, the Post Office asked for R4.09-billion over three years. Of that, R1.93-billion is its universal service grant. This grant pays it for keeping branches open where costs are higher than income. The other R2.2-billion is money it does not get at the moment.
The Post Office said it needs R1.9-billion to modernise. This includes R832-million for technology, R456-million for vehicles, R354-million to fix buildings and R244-million for mail processing.
It has asked for only R600-million of that amount. It pointed to “the fiscal constraints currently being managed by national treasury”. The Post Office said it will look for partners to pay for the rest. Its performance plan shows it has no partnerships with outside parties so far.
The presentation warned that without the money, “technology, logistics fleet and branch restoration do not proceed”.
The Post Office reported a net loss of R69-million for 2025/2026. It spent R2.51-billion while it earned R1.42-billion. Most of the gap was covered by R1-billion in non-operating items, which include public funding. Staff costs of R1.44-billion were higher than its total income.
The plan shows a loss of R309-million next year. The Post Office expects a small profit of R21-million in 2028/2029. For that to happen, income must rise by 45% in three years to R2.06-billion.
Courier and parcel income is expected to grow from R42.7-million to R447-million. Postal income, which has stayed at R846-million for two years, is meant to pass R1-billion.
Gany said the Post Office is no longer in intensive care but in “high care”. She said cash is its biggest risk.
Its exit from business rescue is stuck. The business rescue practitioners applied to end the process on 12 June, but the retirement fund is opposing the application. Settlement talks with Medipos are still going on. Gany warned that the Post Office’s cash was running down while the matter stayed open.
Government committed R6.2-billion to the Post Office’s business rescue almost three years ago. Only R2.4-billion was paid. The second payment of R3.8-billion, meant for modernisation and creditors, was never released.
The Post Office has cut its approved network to 657 branches from about 1,100. Of these, 258 are universal service branches. Staff numbers dropped to 5,658 after 4,342 people left.
Postbank, the Post Office’s former banking arm, also briefed the committee. It wants R2.5-billion through the same budget process. This includes R2-billion to support an application for a commercial banking licence and R500-million for systems and digital channels.
Board chairman Khaya Ngema told the committee that Postbank had been the Post Office’s largest creditor. He said it suffered the biggest loss when creditors were paid 12c in the rand.
Postbank went from a net profit of R94-million in 2024/2025 to a net loss of R5.2-million in 2025/2026. Its deposits fell by 4%. Postbank blamed a “lack of channels and systems”.
The Post Office also wants government to bring into force the 2024 changes to its founding law. These would let it offer more services. The changes still await proclamation, according to the presentation.
Source: this article is based on reporting by TechCentral. Image: TechCentral. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.