The South African Post Office (SAPO) has warned that it will run out of cash reserves by October 2024 and may face liquidation unless it secures a R3.8 billion government bailout. Since entering business rescue in 2023, SAPO has reduced its debt and improved its net asset value, but it still needs additional funds to pay creditors and recapitalise. If the bailout is not secured, SAPO may be forced into liquidation, leading to the closure of operations, loss of all jobs and failure to fulfil its universal service obligation. Other challenges include the potential loss of its package delivery license, lack of government support and disruptions from retrenched employees. A provisional liquidation order remains in effect, further threatening SAPO’s future.
