Founded in 1792, the South African Post Office (SAPO) is the country’s oldest institution, but it is now at serious risk of liquidation.
Once a vital national service connecting people and commerce, the entity has steadily declined and is currently in business rescue, relying on government bailouts to stay afloat.
The Post Office’s origins date back even further, to the early 1500s, when sailors left letters in a boot under a milkwood tree in Mossel Bay.
A formal postal service was later established in Cape Town in 1792, expanding across the country through horseback delivery routes, rail networks, and eventually airmail.
By the 19th century, it had introduced the iconic Cape Triangular stamp, and in 1905, it famously transported the Cullinan diamond.
Following its split from Telkom in 1991, SAPO rejoined the Universal Postal Union in 1994. However, today, the organisation is at risk of being shut down.
Business rescue practitioners have warned that liquidation would trigger severe consequences, including the loss of more than 5,600 jobs and the forced sale of assets at reduced values.
Creditors would recover only a fraction of what they are owed—around four cents in the rand—while critical services could collapse.
The practitioners cautioned that there may be a possible crisis around the distribution of social grants to certain beneficiaries, while rural and underserved communities will be left in limbo.
Speaking in a recent interview, Business Rescue Practitioner Anoosh Rooplal, said the current crisis stems directly from a failure to fully implement the approved rescue plan.
The plan, adopted in December 2023, was designed to stabilise SAPO through a combination of restructuring and government funding.
“An integral part of the business rescue plan was the provision of funding of R2.4 billion and R3.8 billion that was specifically included in the business rescue plan,” Rooplal said.
Money and modernisation are the answer
While the initial R2.4 billion tranche was paid, the remaining R3.8 billion has not been received. “Up to now [it] has not been received,” he noted, despite it being binding on all affected parties, including the government.
This funding shortfall has left SAPO struggling to survive. “Time has elapsed… two years later, and the post office can only survive with the limited funds it has,” Rooplal said≥
He added that the missing funds were essential for daily operations, working capital, and infrastructure upgrades.
The situation worsened after confirmation from the government in late 2025 that no further funding would be forthcoming.
“Unfortunately… we have still not received the funding,” he said, and added that multiple engagements and submissions across several budget cycles had failed to secure the necessary support.
As a result, liquidation is now a real possibility. “When there’s no further funding to meet day-to-day claims, we’ve got to consider a liquidation position,” Rooplal warned, although he emphasised that no court application has yet been filed.
Despite the dire outlook, Rooplal stressed that SAPO remains strategically important. “It’s a very important strategic state-owned asset in our view, and it is dependent on the government for funding,” he said.
He argued that the public may be underestimating its potential, and further stressed that its future lies beyond traditional mail.
He added that global postal operators have successfully adapted by diversifying into financial and digital offerings, something SAPO was slow to do.
“The post office was unfortunately too slow to do that, hence its troubles,” he said, pointing to years of underinvestment and missed warning signs.
While a turnaround plan exists, Rooplal made it clear that without the funding needed to implement it, the future of South Africa’s oldest institution is drawing to a close.
