SA Post Office to get R2.9 bln cash injection

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PARLIAMENT, October 24 – The South African Post Office (Sapo) has been allocated a cash injection of R2.9 billion for its recapitalisation in National Treasury’s medium-term budget policy statement tabled on Wednesday.

The post office is one of three state-owned entities receiving special appropriations. South African Airways will receive R5 billion and South African Airways Express R1.2 billion.

The post office this year took over the payments of social grants after the state’s contract with Cash Payment Services came to an end and beneficiaries were still experiencing technical hitches with the new system.

Sapo relies on government guarantees of roughly R4 billion and reported a loss of R807 million in the last financial year.

– African News Agency (ANA)