South Africa’s Post Office was a century-old institution — corruption and debt broke it

The South African Post Office (SAPO) was a state-owned enterprise that had operated for over 100 years. It was the country’s only licensed postal service, with a network of over 1,400 branches and more than 16,000 employees. Like postal services worldwide, it faced declining mail volumes as email and cell phones replaced letters.

But SAPO’s decline was far worse than its peers. Mismanagement and corruption accelerated the losses. By FY2018, the Post Office recorded a net loss of R908 million on revenue of R4.5 billion. Service collapsed: parcels took six months or more, and employee theft of goods was widespread. The government provided R2.4 billion in bailouts, but it was not enough.

On 12 April 2023, SAPO was provisionally liquidated, putting 16,400 jobs at risk. Business rescue practitioners were appointed and managed to keep the institution alive. Over 4,300 employees were retrenched, and 366 branches were permanently closed, leaving 650 remaining. By May 2025, the practitioners reported that SAPO was in its best shape since 2012, but the corporate plan did not forecast a profit until 2028.