South African Postal Business Unit favours 3% tariff hike
The Postal Business Unit, a division of the SA Postal Services (Sapo), yesterday said it was in favour of the 3 percent general tariff increase for this year despite enormous operational challenges it faced in terms of its licence conditions.
Sapo’s licence conditions prescribe that it provides millions of South Africans, irrespective of their physical location, with a basic postal service that is reliable, affordable and equitable.
The tariff increase was announced by communications minister Ivy Matsepe-Casaburri late on Monday.
In terms of the law, Sapo is also required to provide an address to all citizens; it is facing a backlog of nearly 4 million at present.
“The 3 percent tariff increase will give Sapo space to deliver postal services at a reasonable price,” Phumelele Ntombela-Nzimande, the deputy director-general of the Postal Business Unit, said yesterday.
The tariff increase will be effective from the beginning of April. It means that the cost of a standard letter will rise to R1.70 from R1.65 now.
However, in terms of the Postal Services Bill tabled by Matsepe-Casaburri in parliament last year, Sapo will enjoy a period of exclusivity to provide courier services of up to 1kg, which is reviewable every three years.
The provision prohibits other postal operators, especially those from the private sector, from operating in the reserved area during the period of exclusivity.
It is aimed at helping Sapo to cross-subsidise the lossmaking basic postal services with profits from the lucrative small parcels services.
