South African Post is interested in working with private companies to develop the parcel market under 1kg

According to recent media reports, the unhappiness between South Africa Post and South Africa's private delivery companies has come into the spotlight since 2018.

In 2018, South Africa's Postal Service complained that the country's delivery service, Postnet, was illegally delivering packages of less than 1kg. South African Post says it is under specific obligations under South Africa's postal Act of 1998. It is the only agency in the country to deliver packages of less than 1kg and is subsidised to provide some non-profit services.

In 2019, The Complaints and Compliance Committee (CCC), South Africa's independent communications body, ruled that Postnet was in breach of the Postal Act and ordered it to stop delivering packages of less than 1kg from October that year. Postnet has since sought to defend its claim that South Africa Post has a monopoly role over postal services, excluding parcel services, and won the Gauteng High Court in South Africa to suspend enforcement of the ruling.

According to my Board Band, while South Africa is unhappy with Postnet's marketing practices, it lacks the ability and public trust to serve the existing parcel market for private delivery.

Currently, South African Post is seeking to cooperate with other enterprises to realize digital and modernization reforms and meet the needs of the e-commerce market, the report said. In addition, the company offered to cooperate with private express companies to provide delivery services for packages of less than 1 kg. As of Aug. 2, reports said it was unclear whether private companies would be willing to cooperate with the post.

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