In a decisive move to stem job losses and stabilize a struggling state entity, Employment and Labour Minister Nomakhosazana Meth has unveiled a R381 million relief package aimed at rescuing the South African Post Office (SAPO) from the brink.
The funding—secured through the Unemployment Insurance Fund’s Temporary Employer-Employee Relief Scheme (TERS)—will protect the livelihoods of 5,956 SAPO workers over the next six months, as the institution attempts to rebuild itself amid deep financial distress.
“This is a bold step to protect workers and restore confidence in our public institutions,” said Meth, emphasizing that the initiative reflects the government’s commitment to economic recovery and job security.
The deal was formalized on May 18 through a Memorandum of Agreement between SAPO and the UIF, signaling renewed efforts to stabilize one of South Africa’s most embattled state-owned enterprises.
SAPO has been under business rescue since 2023, after a R2.4 billion bailout failed to pull the entity out of crisis. Business rescue practitioners now estimate that an additional R3.8 billion will be necessary to return the Post Office to full operational health. Still, SAPO is optimistically projecting profitability by 2028, banking on reforms and government support.
While the road to recovery remains long, this latest intervention offers a critical reprieve—not just for SAPO, but for thousands of South African workers whose futures hang in the balance.
