South African Post Office Prepares to Exit Business Rescue
What’s Happening?
The South African Post Office (SAPO) is getting ready to leave business rescue. Once a new board of directors and executive team are officially in place, the rescue practitioners will file a court application to finalize the exit.
Who Confirmed the Plan?
Acting CEO Fathima Gany shared the update while presenting the 2026 budget and annual performance plan to the Communications and Digital Technologies Portfolio Committee. She said the goal is a responsible exit that keeps the business running smoothly.
How Will the Exit Work?
The rescue team is drafting an affidavit that will hand over responsibilities to the new accounting authority – the incoming board and executive management. Gany explained that the affidavit will be submitted to court as part of the exit process.
Progress on the New Leadership
Nonkqubela Jordan‑Dyani, Director‑General of the Department of Communications and Digital Technologies, said the appointment process for the new board is almost finished. Only final checks remain for the chairperson, deputy chairperson, and union representatives.
Post‑Rescue Game Plan
Gany noted that the management team has created an annual performance plan that blends lessons from the rescue phase. The plan focuses on:
- Restoring financial sustainability
- Keeping the social mandate alive
- Securing funding for investment and diversification
Key Strategies
- Government Business: Prioritize work for state departments.
- Private Partnerships: Team up with companies to boost services.
- Property Monetisation: Use SAPO’s real‑estate assets to generate income.
Vision from the Top
Jikesh Jagbeer, SAPO Executive General Manager, wants the Post Office to become a modern, relevant, and financially sound national institution. He believes that with smart decisions, disciplined execution, and strong partnerships, SAPO can win back trust from stakeholders and customers.
Revenue Targets
Jagbeer shared ambitious revenue goals:
- Current year: R114 million
- Next year: R187 million
- Following year: R383 million
He warned that reaching these numbers depends on securing the needed funding and getting clear rules about SAPO’s future role.
Funding Needs
To cover monthly shortfalls, SAPO estimates it will need about R1.89 billion in capital. This money will help launch new products and services that can drive growth.
Postbank’s Parallel Moves
While SAPO works on its exit, its banking arm, Postbank, is also making headlines:
- Postbank is seeking R300 million for short‑term infrastructure investments.
- It plans to take the South African Social Security Agency (Sassa) to court over unpaid bills – Sassa owes Postbank over R100 million for six months.
- The South African Reserve Bank requires Postbank to hold R2 billion in capital, adding pressure to its finances.
Postbank’s Optimistic Outlook
CEO Nikki Mbengashe said Postbank aims to grow its customer base by 5 % and is looking to buy a dedicated head office building – something the bank currently lacks.
Conclusion
Both SAPO and Postbank are at a turning point. SAPO’s planned court affidavit will mark the end of business rescue, paving the way for a new board and a fresh strategy focused on government work, private deals, and property income. Meanwhile, Postbank is tackling its own funding gaps and legal challenges while aiming for modest customer growth and a proper headquarters. If the funding and regulatory clarity come through, both institutions could regain relevance and financial health in the coming years.
