Treasury is refusing to give the South African Post Office the money promised by Cabinet to bail out the state-owned entity until it presents a solid business plan.

Last year, Cabinet agreed to allocate R 3.8 billion to prevent SAPO’s liquidation, allowing it to enter business rescue in July 2023. Despite an approved rescue plan, the funds remain unpaid, with SAPO warning of a potential “Day Zero” next month, risking liquidation and job losses.

But Treasury is demanding proof of SAPO’s future profitability before releasing the funds. Communications Minister Solly Malatsi and Deputy Mondli Gungubele have also stressed the need for a sustainable business case.

SAPO’s business rescue practitioners aim to revamp the Post Office, focusing on digital channels and financial services.

The post office has been struggling for some time, facing several financial problems, which have impacted its services. Many post offices have since closed due to the lack of funding, impacting thousands of communities in need of social grants.