{"id":58640,"date":"2023-12-28T18:30:12","date_gmt":"2023-12-28T18:30:12","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister"},"modified":"2023-12-28T18:36:44","modified_gmt":"2023-12-28T18:36:44","slug":"post-office-cannot-survive-without-r3-8-billion-bailout-minister","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister","title":{"rendered":"Post Office cannot survive without R3.8 billion bailout \u2013 Minister"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The South African Post Office (SAPO) cannot continue its operations without a R3.8 billion bailout, which is yet to be approved by the Cabinet.<\/p>\n

This is feedback from the Minister of Communications Mondli Gungubele, who told Newzroom Afrika that the Post Office would need billions of rands to execute 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

Gungubele said the Post Office cannot continue operating as it is and needs to implement its radical business rescue plan to save the company.<\/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

The Post Office has asked for a R3.8 billion bailout to implement its business rescue plan.<\/p>\n

\u201cThe R3.8 billion is one of the things that was analysed as going to be necessary to do that turnaround,\u201d Gungubele said.<\/p>\n

\u201cIf you want to rescue SAPO, that is the only way it can go forward.\u201d<\/p>\n

He said the proposal would be presented to the Cabinet for approval and then sent to the National Treasury to execute.<\/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) cannot continue its operations without a R3.8 billion bailout, which is yet to be approved by the Cabinet. This is feedback from the Minister of Communications Mondli Gungubele, who told Newzroom Afrika that the Post Office would need billions of rands to execute its business rescue […]<\/p>\n","protected":false},"author":84,"featured_media":58638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,7],"tags":[274,315,275],"class_list":["post-58640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nPost Office cannot survive without R3.8 billion bailout \u2013 Minister - South Africa<\/title>\n<meta name=\"description\" content=\"The South African Post Office (SAPO) cannot continue its operations without a R3.8 billion bailout, which is yet to be a ...\" \/>\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-cannot-survive-without-r3-8-billion-bailout-minister\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Post Office cannot survive without R3.8 billion bailout \u2013 Minister\" \/>\n<meta property=\"og:description\" content=\"The South African Post Office (SAPO) cannot continue its operations without a R3.8 billion bailout, which is yet to be a ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-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=\"2023-12-28T18:30:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-28T18:36:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/12\/sm_1703775934.338994.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\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-cannot-survive-without-r3-8-billion-bailout-minister#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Post Office cannot survive without R3.8 billion bailout \u2013 Minister\",\"datePublished\":\"2023-12-28T18:30:12+00:00\",\"dateModified\":\"2023-12-28T18:36:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister\"},\"wordCount\":348,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/12\/sm_1703775934.338994.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\",\"head lines\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/post-office-cannot-survive-without-r3-8-billion-bailout-minister\",\"name\":\"Post Office cannot survive without R3.8 billion bailout \u2013 Minister - 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