The minister of communication and digital technology quietly removed the Post Office’s small parcels monopoly in a notice in the Government Gazette. Although this move creates policy certainty, it is not much of a big deal as the requirement was never enforced.
The issue of the Post Office’s legal right to be the only entity that can deliver parcels that weigh less than 1kg surfaced every now and then, with consumers saying that they will not trust it to deliver their smart phones and jewellery, while others said it then means that the Post Office is then also the only one that can deliver your pizza… a few weeks later.
According to the Postal Services Act, the Post Office originally had an exclusivity licence for 25 years, starting in 2000, which means that the licence expired in April this year in any way.
ALSO READ: Minister extends Post Office exclusivity period for small packages
Former minister extended Post Office’s exclusivity for delivering small packages
In May last year, the former minister of communications and digital technologies, Mondli Gungubele, extended the Post Office’s exclusivity for small packages again, which meant that courier companies were not allowed to deliver certain packages.
The minister said he reviewed the period when nobody apart from the SA Post Office is allowed to provide a reserved postal service and extended the Post Office’s exclusivity until 1 April 2025.
According to the notice, the reserved postal service included in terms of schedule 1 of the Postal Services Act the delivery of all letters, postcards, printed matter, small parcels and other postal articles that weigh less than 1kg, or that will fit into a rectangular box that is 458mm long, 324mm wide and 100mm thick.
It also included cylinders with a maximum length of 458mm that are 100mm thick and weigh less than 1kg. Gungubele said in the notice that the legislative framework and licence requires the Post Office to provide these services universally to every citizen in the country to ensure they have equal access to a basic postal service that is reasonably accessible regardless of physical location, at an affordable and uniform postage rate.
ALSO READ: Surprise, surprise: Woman receives ‘lost parcel’… 13 years later
Nobody prosecuted in 25 years for delivering small parcels instead of Post Office
However, nobody was ever prosecuted for delivering packages weighing less than 1kg even as South African consumers order more and more goods online. Now, it seems the requirement is removed and enforcement cannot happen now.
New minister, Malatsi said in the Government Gazette published on 12 December that he is removing the reference to small parcels and amending Schedule 1 of the Postal Services Act as provided for in section 15(3) of the Act.
Garry Marshall, CEO of the South African Express Parcel Association (SAEPA), says SAEPA welcomes the minister’s publication of the notice addressing the small parcels issue.
“It has consistently been SAEPA’s contention that our members and the express logistics industry are lawfully entitled to transport ‘small parcels’ in South Africa. Removing ‘small parcels’ from Schedule 1 of the Postal Services Act follows sustained lobbying by SAEPA and associates, South African business, trade diplomats and the general public. It has also been the subject of protracted litigation.”
ALSO READ: SA Post Office: After 16 years, my parcels are yet to be delivered…
Concern about committee chair asking minister to retract Post Office’s small parcel notice
However, Marshall says they note with concern a media statement quoting the chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, calling for the immediate withdrawal of the “small parcels” directive.
“In addition, she noted with grave concern the decision to terminate the less-than-1 kg parcel reserved service for the Post Office, cautioning that this development poses a direct threat to its sustainability.”
Diko said the Post Office remains a critical public service institution, particularly for rural and underserved communities who depend on affordable postal and parcel services. “The implications of this termination for the turnaround strategy of the Post Office and its universal service obligations require urgent clarity.”
She also reiterates the call for immediate withdrawal of these directives which go against the letter and spirit of not only the law but subsequent discussions the committee had with the minister in this regard, Marshall says.
ALSO READ: ‘Elon Musk is a security risk’: Backlash mounts as Malatsi’s ‘Starlink’ policy directive slammed
Removal of Post Office’s small parcel monopoly to be discussed again next year
Diko will convene a meeting of the committee to consider these developments in the new year. She says the committee remains committed to continue to exercise its oversight mandate to ensure that national policy objectives, such as universal access, socio-economic transformation and the viability of strategic state-owned entities, are fully upheld.
Marshall says business, agriculture, commerce, the administration and the public all rely on express logistics for the safe and secure movement of urgent and important items.
“It is our fervent wish that the small parcels situation can be swiftly and satisfactorily resolved, bringing to an end costly and unaffordable litigation to our industry which the authorities praised during the Covid shutdown for “keeping the South African economy pumping,” Marshall says.
Diko also complained about Malatsi trying to smooth the way for Starlink to operate in South Africa without adhering to BEE requirements.
About the Author
