(2 minutes read)
· The national lockdown has caused losses to the SA Post
Office. The losses are estimated at R798 million by the end of May
· The bulk of revenue of the Post Office comes from postal
services. During the lockdown days, the revenue nosedived.
The national lockdown has caused losses to the SA Post Office. The
losses are estimated at R798 million by the end of May. The Post
Office’s board and management painted a bleak picture for the already
troubled entity. The loss of revenue for the five weeks of the
initial lockdown (late March to the end of April) was pegged at R465
million. It projects a R333 million loss for May. This will take
the total estimated losses to R798 million. Based on this trend, the
Post Office estimates revenue losses of R1.9 billion for the year.
The bulk of revenue of the Post Office comes from postal services.
During the lockdown days, the revenue nosedived. Coupled with the
losses from the previous financial year, the Post Office is now facing
a severe cash crunch. To come out of the difficult times, it has
submitted a request to the Treasury for financial assistance at least
to address the revenue losses. The Post Office also faces the issue of
obsolete technology, and has lagged behind in e-commerce, which runs
on technology platforms.
