South African Post Office closes 92 branches, affecting social grant payments

Just weeks after the national budget speech regarding social grants, the South African Post Office has closed 92 branches.

It is reported that some of the branches are closed because 50 of them owe rent to landlords and that is a blow to social grant beneficiaries.

This was according to the opposition party, the Democratic Alliance, which said it was revealed during a portfolio committee meeting.

The closure of these post offices will lead to thousands of residents losing what is frequently the only access point for their grants or savings.

During Finance Minister Enoch Godongwa’s Budget speech, it was announced that the South African Post Office would receive R2.4 billion.

“For the Sapo staff, this is a further blow that follows news of a proposed 40% salary deduction and 6 000 job cuts. As Sapo completed a final death spiral, the government last week tossed some air under its wings in the form of a R2.6bn billion – which may slightly dent the debts of R5.4bn,” the DA said on Wednesday.

The closure of post offices will massively impact on people who also access critical services, particularly those in rural areas who rely on post offices as their primary means of obtaining their social grants.

Sapo chief executive Nomkhita Mona said the SA Post Office last posted a profit in 2004, and the decline in its financial position began as far back as 17 years ago.

Additionally, Mona said the recession in 2008 and the adoption of smartphones accelerated the decline as previously reported by BusinessTech Africa.

In response, Sapo spokesperson Johan Kruger confirmed that the entity was in consultation with labour unions.

“The Post Office brought this matter to the table in November 2022. The first letter to the unions to introduce the Section 189 (retrenchment) process was in November 2022. Prior to that, there have been a number of engagements with all unions recognised at the SA Post Office, considering and exploring the various options to reduce the high cost of employment. These engagements still continue,” he said.