As it battles for survival, the state-owned entity is pushing the regulator to penalize couriers like Takealot and PostNet for delivering small parcels, arguing the fines should be ringfenced for its own use.
JOHANNESBURG – In a bold move that has reignited a long-running industry battle, the South African Post Office (SAPO) is demanding that the communications regulator, ICASA, fine courier companies that deliver parcels under 1kg and give the money directly to the struggling state-owned entity.
This revelation comes from the latest report by the Post Office’s Business Rescue Practitioners (BRPs), who detailed the ongoing litigation against the South African Express Parcels Association (SAEPA), Takealot, and PostNet.
The Post Office’s claim hinges on its exclusive right, granted by the Postal Services Act, to be the sole deliverer of parcels weighing 1kg or less. It argues that ICASA’s current interpretation of these regulations is “incorrect” and that the regulator should actively enforce its monopoly by imposing financial penalties.
“The SA Post Office believes that the regulator should impose fines, and ringfence monies derived from such funds for the use of the SA Post Office,” the BRPs stated.
A Legal War Years in the Making
The conflict dates back to a 2018 complaint filed by SAPO with ICASA. In 2019, the regulator ruled in the Post Office’s favour, ordering PostNet to stop delivering sub-1kg parcels. However, PostNet, along with SAEPA and Takealot, launched a legal review application, and the matter remains tied up in court, with heads of argument now due by December 2025.
This legal offensive comes at a critical time. The Minister of Communications, Solly Malatsi, announced in March 2025 that he would review the Post Office’s exclusive monopoly on certain services, a mandatory assessment that could potentially strip SAPO of its protected status.
Monopoly Seen as Key to Survival
Despite the looming review, Post Office management in KwaZulu-Natal has expressed optimism that protecting its legislative advantage is key to generating sufficient income and achieving sustainability.
During a parliamentary oversight visit, portfolio committee member Sibongiseni Vilakazi noted that there was an “animated discussion” on income generation, with many believing that “securing the legislative advantages would help improve income.”
The Post Office’s push for its competitors’ fines to fund its own revival underscores the high stakes in the battle for South Africa’s lucrative small-parcel market, a sector that has exploded with the growth of e-commerce.
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