{"id":58384,"date":"2023-12-21T14:47:30","date_gmt":"2023-12-21T14:47:30","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister"},"modified":"2023-12-21T18:20:34","modified_gmt":"2023-12-21T18:20:34","slug":"post-office-expecting-billions-more-in-losses-minister","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister","title":{"rendered":"Post Office expecting billions more in losses \u2013 Minister"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The South African Post Office (SAPO) is currently running at a R2 billion loss for the current financial year and is expecting to post a R1.7 billion loss for the next year as its operating costs have skyrocketed.<\/p>\n

This is feedback from the Minister of Communications Mondli Gungubele, who told Newzroom Afrika that the next major challenge for the Post Office is implementing its business rescue plan.<\/p>\n

The business rescue plan by joint business rescue practitioners Anoosh Rooplal and Juanito Damons was approved by the majority of creditors earlier this month.<\/p>\n

It laid out significant cost-cutting measures, particularly a reduction in the size of the Post Office\u2019s branch network to only 600 branches and a reduction of employees to 5,000.<\/p>\n

Cutting its staff complement by around 7,000 would reduce its wage bill by an estimated R1.3 billion.<\/p>\n

The Post Office has run at a loss every year since 2013 and has failed to compete with private couriers. It has since recorded over R19 billion in losses.<\/p>\n

As its finances deteriorated, it prioritised paying the employees the cash component of their salaries from 2020.<\/p>\n

The entity was simply not making enough money to cover other employment costs, including medical aid and pension funds.<\/p>\n

Earlier this year, it was reported that the business rescue plan entailed cutting the Post Office\u2019s workforce in half to cut its wage bill by R1.3 billion.<\/p>\n

Gungubele said the Post Office could not be allowed to continue to operate in this fashion, and if it did, it would have to be closed down.<\/p>\n

\u201cWe are going on a net loss of R2 billion plus, and we are projecting a R1.7 billion loss next year,\u201d he said.<\/p>\n

Shockingly, Gungubele revealed that the Post Office\u2019s operational costs are around 185% of its entire revenue and are projected to reach as high as 200%.<\/p>\n

Employee costs alone are 150% of the company\u2019s revenue.<\/p>\n

\u201cIf you listen to what I have said, if it continues, then it means we must close the South African Post Office,\u201d Gungubele said.<\/p>\n

If the Post Office is shut down, businesses reliant on its services will collapse, and millions of South Africans who rely on it will be stranded, Gungubele warned.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The South African Post Office (SAPO) is currently running at a R2 billion loss for the current financial year and is expecting to post a R1.7 billion loss for the next year as its operating costs have skyrocketed. This is feedback from the Minister of Communications Mondli Gungubele, who told Newzroom Afrika […]<\/p>\n","protected":false},"author":84,"featured_media":58383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,12],"tags":[274,315,275],"class_list":["post-58384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-policy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nPost Office expecting billions more in losses \u2013 Minister - South Africa<\/title>\n<meta name=\"description\" content=\"The South African Post Office (SAPO) is currently running at a R2 billion loss for the current financial year and is exp ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Post Office expecting billions more in losses \u2013 Minister\" \/>\n<meta property=\"og:description\" content=\"The South African Post Office (SAPO) is currently running at a R2 billion loss for the current financial year and is exp ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-21T14:47:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-21T18:20:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/12\/sm_1703158894.848563.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Post Office expecting billions more in losses \u2013 Minister\",\"datePublished\":\"2023-12-21T14:47:30+00:00\",\"dateModified\":\"2023-12-21T18:20:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister\"},\"wordCount\":381,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/12\/sm_1703158894.848563.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"head lines\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-expecting-billions-more-in-losses-minister\",\"name\":\"Post Office expecting billions more in losses \u2013 Minister - 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