Government May Liberalise Postal Services In Major Review

The department of communications digital technologies has invited public participation in a planned review of "reserved postal services" as defined in the Postal Services Act. These are the services that only the Post Office has a legal right to provide in South Africa.

The rationale behind reserving certain services is to protect revenues for the Post Office, providing the bankrupt state-owned entity with a monopoly that will help subsidise its mandate to rural and outlying communities even if it is not profitable for it to do so.

The Post Office's monopoly on sub-1kg parcels, although widely ignored, is one of the monopoly services that will form part of the review.

The communications department this week released a discussion document to assist stakeholders before their inputs are submitted to the department.

"The purpose of this discussion document is to solicit comments and inputs from stakeholders on the review of the Post Office's exclusive right to provide reserved services and the feasibility of liberalising the postal sector in the country," said the document.