Johannesburg – The South African Post Office (SAPO) is undergoing major transformation to become a digitally connected and financially stable organization by 2028.
This ambitious vision is outlined in Corporate Plans 2025-2028, entitled “Reengineering SA's Designated Postal Operators.”
Developed under the guidance of business rescue practitioners, the plan sets the roadmap for SAPO's revival through digital transformation, service diversification and strategic partnerships.
Vision for the future
Fathima Gany, Group Representative CEO of Sapo, said:
“The South African Post Office stands at a pivotal moment in its long history.
“As a state-owned enterprise, SAPO has played an important role for decades in connecting and promoting South African communities.
“But like many postal services around the world, SAPO has faced major challenges in recent years, especially as mail volumes decline and competition is escalating in the digital age.”
To combat these challenges, SAPO's corporate plan focuses on:
Digital transformation (modernization of operations and expanding e-commerce logistics) Financial sustainability (diversification of revenue streams beyond traditional email) Universal service obligations (ensure connections in rural and unserviceable regions)
Gany added: “By 2028, SAPO will be a digitally connected, financially stable organization that provides critical services that promote economic inclusion, social equity and environmental sustainability.”
Important Strategies for Transforming SAPO
1. Utilizing national mail infrastructure
SAPO's 657 branches and 2,000 delivery workers guarantee a nationwide reach, including remote locations. Its vast fiber network supports high-speed digital connectivity and closes urban gaps.
2. Modern operation
Key initiatives include:
Introducing mobile ecommerce & financial services platforms by upgrading mail and logistics systems to expand broadband access in areas with shortages of service
3. Diversification for growth
To reduce our reliance on lower email revenue, SAPO is expanding:
Digital Services (Online Postal Service and Financial Platforms) Financial Solutions (Non-core Banking, Insurance, Payment) Hybrid Mail System (Combination of Digital and Physical Mail)
4. Gives the power of small and medium-sized businesses
SAPO's logistics network helps small and medium-sized businesses and rural entrepreneurs enter the e-commerce economy and drive job creation and regional economic growth.
5. Strengthening Digital Inclusion and Sustainability
Through public-private partnerships, SAPO aims to close digital disparities and ensure broader access to government and financial services.
Revenue growth and financial sustainability
SAPO's revenue strategy focuses on:
Maintain traditional postal revenue (target R547 million in additional revenue) e-commerce logistics (projecting R1.4 billion in revenue by 2028) diversify digital and financial services (target R1 billion in new revenue)
Important government funding is required
The conversion of SAPO depends on securing government recapitalization of R3.8 billion. This funding will support you as follows:
Upgrading IT Systems (Replacing outdated point-of-sale systems) Branch renovations and latest equipment fuel-efficient fleet & logistics technology
Without this financial injection, SAPO's ability to modernize and compete in the digital economy will be severely hampered.
SAPO's future of digital empowerment
By 2028, SAPO aims to be a modern, economically stable, digitally connected organization that plays an important role in South Africa's economic and social development.
Through innovation, strategic partnerships and operational efficiency, SAPO will redefine its role in the rapidly evolving digital landscape. This ensures that we will remain an important service provider for all South Africans.
“Our immediate focus is to provide a quick victory that will set momentum towards a complete transformation of SAPO by 2028,” Gany says.
*This article was first published in our sister publication techfinancials.co.za
