Minister of Employment and Labour, Nomakhosazana Meth, has announced a R381 million lifeline to stabilize the South African Post Office (SAPO), safeguarding nearly 6,000 jobs.

The funding, provided through the Unemployment Insurance Fund’s Temporary Employer-Employee Relief Scheme (TERS), was formalized on May 18, via a Memorandum of Agreement between SAPO and the UIF.

The six-month intervention aims to provide immediate financial relief to 5,956 employees while SAPO implements a turnaround strategy to address its ongoing financial crisis.

“This is a bold step to protect workers and restore confidence in our public institutions,” Meth said, emphasizing the TERS program’s role in stabilizing employment and supporting economic recovery.

SAPO, under business rescue since 2023, previously received a R2.4 billion bailout in 2023/24, but business rescue practitioners warn an additional R3.8 billion is needed for a full recovery. Despite fiscal challenges, Meth’s initiative underscores the government’s commitment to job preservation and reforming state-owned enterprises, with SAPO projecting profitability by 2028.

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