Successful developmental states such as Japan, Singapore and South Korea demonstrate how a clear development mandate, supported by enabling institutional architecture, long-term vision, policy continuity and the capacity to implement across government, can drive economic success.
What would a developmental institutional culture look like in South Africa? And what would it take to bring a profoundly divided population, shaped by years of deliberate public policy, into full and meaningful participation in the economy?
Post offices were historically designed around universal service obligations (USO), regulatory requirements that ensure access to essential services. The recent South African Post Office SOC Ltd Amendment Act, 2024 aligns with the National Planning Commission’s vision, redefining SAPO’s role from a traditional postal service to a cornerstone of South Africa’s socio-economic infrastructure, positioning it as a key enabler of digital inclusion, e-commerce and integrated government service delivery. Despite this, the institution’s unique potential has frequently been overlooked in public debate.
SAPO remains a critical pillar of financial inclusion, with the ability to provide low-income earners with access to financial services and lower barriers to entry for those historically excluded. With its 657 branches and access to over 130,000 km of fibre network, the Post Office can connect underserved communities, offer internet access, and serve as a public touchpoint for government services. As custodian of the national address database, it also supports e-commerce growth and connectivity for rural households.
Yet the institution is hampered by outdated systems, insufficient capital and operational inefficiencies. Mail processing, logistics and IT infrastructure urgently need upgrading, as outlined in the Business Rescue Plan. The current status of the entity prevents SAPO from fulfilling its mandate and leveraging its vast network to drive inclusion and economic integration. Without digitisation, modernisation and investment, these capabilities remain untapped, and critical services risk collapse.
Privatising, hollowing out or shutting down the Post Office would deepen inequality, raise costs for remote communities and reduce the state’s presence where it is often the only point of contact.
It still astounds me that so little informed and considered thought has been given to the potential of the South African Post Office in meeting our developmental agenda and implementing the recent South African Post Office SOC Ltd Amendment Act, 2024.
It is further deeply concerning that an institution caught between a rapidly changing industry and a lack of focus and clarity in the governance of state-owned enterprises is now in crisis — meaning that SAPO is a victim, and the South African public, especially the economically disenfranchised, bears the brunt of poor implementation and execution. Dr Kameshnee Naidoo, IOL