International Finance

South Africa requests new banking licence for Postbank

South African Post Office is losing out large number of logistics business due to this factor

The Ministry of Communications department asked for a fast tracked banking licence for the Post Bank to prevent South Africa Post Office from losing out large number of logistics business. The requirement was raised by the Deputy Minister of Communications, Pinky Kekana.

The minister stated that the South African Post Office was losing out on a large number of businesses related to logistics due to the factor.

The Ministry of Communications also announced its plans of reconfiguring the department and its entities to the Parliament. Kekana said that the Post Bank could benefit South Africa in the reconfigured department that included Sentech and state information technology company SITA.

She said, “We have lost, in a big way, business around logistics. I don’t want to mention companies that are doing a lot of that what the Post Office is supposed to do in delivering parcels whether from abroad or anywhere.”

The minister said that the South African Post Office should get more involved in logistics business and should handle all the postal needs of the government, instead of private companies who have presently taken over the logistics business.

The minister said that the situation can be changed in favour of South African post office if the Parliament and its departments use the Post Office for its postal needs.

President Cyril Ramaphosa had announced the merging of the departments of communications and telecommunications and postal services earlier in 2019. The merging of all the departments led to the formation of Department of Communications and Digital Technologies.

The reconfigured department in a recent announcement stated that a strategic change in the working of the SABC and South African Post Office will be its priority. The two firms are currently on the verge of collapse owing to financial problems and mismanagement.

The South African Post Office recently made a reform in its business by accepting debit and credit card payments for car licence renewals. The service is available only at selected post offices in all provinces except Mpumalanga and the Western Cape.


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