Death of South Africa’s oldest state-owned company

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The once proud South African Post Office was used to ship the world’s biggest diamond to London. Today, it cannot even be trusted to deliver the most basic goods.

If the Post Office closes its doors in October 2024 due to a lack of funding for its business rescue, it will mark the end of one of South Africa’s oldest companies and the oldest state-owned entity in the country.

The latest bailout will be in addition to R10.4 billion in bailouts paid to the struggling entity over the past decade, during which time it recorded total losses exceeding R19 billion. It would be hard for many to believe SAPO was also nominated for four World Mail Awards in 2004, including in the categories of technology, e-commerce, innovation, and security.

In 1848, the Transvaal government appointed its first professional postmen to transport inland mail in its area of governance. The impact was exacerbated by SAPO gaining a reputation for late and slow deliveries and some of its employees stealing people’s packages, eroding its trust among the South African public.

Barnes turned SAPO’s negative net equity of R141 million to a positive R5.19 billion by growing its assets from R10.12 billion to R16.07 billion in three and a half years.

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