Communications minister Mondli Gungubele said government is working to save the South African Post Office and ensure business continuity under a provisional liquidation order.
Speaking in parliament on Wednesday, Gungubele said said the Post Office remains fully operational and committed to delivering essential services to the people of South Africa – and that despite the current challenges, the public can still expect to receive letters, courier packages, renew their vehicle licences, withdraw their social grants and receive chronic medication.
He introduced the “Post Office of Tomorrow”, which he said could “improve customer experience by simplifying and streamlining processes, as well as increasing accessibility and convenience”.
This will be achieved through innovative technology solutions such as online portals and mobile applications, as well as enhancing the efficiency of existing postal services. “With these efforts, the Post Office will be able to remain relevant and competitive in the rapidly evolving digital age,” Gungubele said.
The Post Office of Tomorrow revises the strategic role of the company from a conveyor of letter-post to an integrated logistics and e-commerce service provider, including designation as the national authentication authority. To this end, it was allocated R2.4-billion to bring stability to the entity by the minister of finance in his 2023 budget speech.
The communications minister said, too, that the corporatisation of Postbank is at an advanced stage. The South African Postbank Amendment Bill was approved by the national assembly in March this year, and once signed into law by the president will be the last step in the banking licence application process.
Unique position
This will allow Postbank to fulfil its function as a fully licensed commercial bank owned by the state and able to render financial and banking services to the public.
Postbank has a unique position in serving a niche market as a state bank. Research indicates that 67% of the adult population in South Africa agrees that commercial bank fees are too high. Additionally, 23.5% of the population remains excluded from the banking system due to inaccessibility of financial services.
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“It is concerning to note that 62% of SMMEs still cannot access credit facilities. Even those SMMEs who have access to a bank account (81%) still struggle to access other financial services, such as business banking services, credit and insurance. This indicates a clear gap in the market, which Postbank can potentially help fill,” said Gungubele.
The minister said Postbank would ensure accessibility to affordable financial products, services, advice and guidance through a multi-channel approach, serving urban and rural communities and providing financial security to large parts of society. – © 2023 NewsCentral Media