Post Office needs R1.6bn funding injection
Communications Minister Khumbudzo Ntshavheni says while the SA Post Office (Sapo) is not soliciting the support of Parliament for a R9bn bailout, it requires a R1.6bn funding injection.
Should the Communications Department and National Treasury approve the funding, it needs to be linked to revenue-generation interventions.
A Fin24 report says this was contained in Ntshavheni's response to a parliamentary question on Sapo's turnaround strategies.
Ntshavheni said the decline of Sapo funding by Treasury was due to fiscal constraints.
‘However, there is consensus with the Minister of Finance on funding the implementation of the Sapo repositioning plan in the 2022/23 financial year. The Minister of Finance is finalising the necessary details. This is because Sapo is a critical agent for government to deliver critical services to the rural poor in areas where government offices are not physically present via its far-reaching postal network. If properly harnessed, the reach of the postal network holds great potential to position the Sapo as a strategic contributor to the goal of ensuring both economic and digital inclusion in SA,’ she said.
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