South Africa: Post Office to Spend R 2,6 bn
The South African Post Office planned capital expenditure of R 2,6 bn on new and existing infrastructure over the next three years to continue current growth, it said yesterday.
Newly appointed chairwoman Vuyo Mahlati told senior employees, union representatives and the media yesterday that the Post Office would more than double its capital expenditure in the coming year. The money would go to building new post offices, upgrading others and improving access to information technology (IT).
“We will increase capital expenditures from R 300 m in the last financial year to R 892m (this year),” she said, announcing year-end results in Johannesburg.
This would increase to R922m in 2009 and then drop to R800m in 2010, once plans had been met.
Chief financial officer Nick Buick said the investment would be split 60 pct-40 pct between building and improving property infrastructure, and increasing access to broadband and information and communications technology.
The government contributes about R300m annually to the Post Office, and had committed to this figure for the next two years at least.
This money was to subsidies meeting the needs of rural South Africans.
A further R 200 m for this purpose would come from the Post Office’s cash resources – currently at R 4,5 bn. 1 British Pound (GBP) = 14.61709 South African Rand (ZAR)
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