Transcript Document
Trends in Postal Sectors
SMME OPPORTUNITIES IN THE POST OFFICE
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1. Background
• Postal Services are the most basic and common means by which messages are
communicated and goods delivered. They also form a basic link serving the entire
population and also being an important medium of communication.
• The Postal Services sector contributes approximately 3% to the GDP. This includes
Courier and Express Parcel market.
• A basic Postal Service is the right of all citizens. Universal Service obligations
ensure that services are affordable, efficient and address quality service
imperatives.
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2. Main Activities
• Mail Delivery (Pick-up, sorting, transport and delivery of letter post, mail parcels
and packages) by postal services operating under Universal Service obligation.
• Retail Services
• Banking Services
• Agency Services (Motor Vehicle License renewals, Account Collections on behalf
of third parties)
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3. Business Opportunities
• Mail Delivery creates opportunities for construction of postal infrastructure, retail
infrastructure, backbone infrastructure (IT and broadband) and logistics
infrastructure. The Post Office has more than 1500 Post Office outlets and more
than 800 Postal Agencies countrywide.
• Attention is paid to security of the system to ensure that letters, parcels and other
postal items are not pilfered, damaged or lost.
• Transportation (Distribution ) has given rise to small businesses that supply fuel,
tyres, repairs, maintenance and related products.
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4. Business Opportunities (Cont)
• SMME’s are currently engaged in the manufacture of Post Boxes, Letter Trays,
Mailbags, Rolltainers, Twine, Seals, Labels, Bicycles e.t.c.
• Opportunities in the Banking and Retail sphere include Printed Matter ( Thermal
Rolls, Forms, Envelopes, Labels) Installation and maintenance of IT networks.
• Efforts are underway to establish the Post bank as a separate entity within SAPO
Group. All financial functions and payment products will be aligned under the
division to provide more financial services to all South Africans and enlarge
opportunities for service providers to do business with Post bank.
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5. Business Opportunities (cont)
• The Post Office noticed during the period of recent industrial action that it needs to
invest in more modern and advanced mail and parcel sorting equipment. This will
increase efficiencies. Any innovation is an opportunity for service providers.
• The distribution of Set Top boxes can be done easily through the Post Offices
national footprint. This will provide work for SMME’s.
• The Postal address system for home and location address is still a necessity to link
a person with the services he requires.
• Responding to the demands of the digital age on Postal services will require
another kind of service that must be exploited by ICT service providers.
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6. Special Programmes
• Enterprise and Supplier Development
This program benefits SMME’s, Black women and Youth.
It fosters entrepreneurship and innovation through skills development and business
support systems. It increases the capacity of SAPO SMME’s to meet not only
SAPO’s but other customers demands, thereby fulfilling the objectives of self
sustainability .
• Development of the second economy (Joint Ventures and Subcontracting)
The Post Office partners large enterprises with emerging ones to foster enterprise
development. The Infrastructure Refresh Program has seen four large original
equipment manufacturers (OEM) being partnered for skills development with small
enterprises. Small enterprises benefit each to the value of 25% of the project
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End of presentation
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