The Minister of Employment and Labour, Ms Nomakhosazana Meth, welcomes the application for the South African Post Office (SAPO) to exit business rescue, marking a critical and encouraging milestone in the journey towards restoring the institution's stability, credibility, and long-term sustainability.

The Department of Employment and Labour played a pivotal role in supporting SAPO during its most difficult period. Through the R381 million investment in Temporary Employer/Employee Relief Scheme (TERS) and the Unemployment Insurance Fund (UIF), over a six-month period, the Department provided critical financial support to preserve jobs and sustain operations. This intervention provided immediate financial relief to 5,956 employees while enabling SAPO to implement a sustainable turnaround strategy.

Minister Meth aligns with the sentiments expressed, in recognising this development as a necessary turning point for SAPO.

“This intervention demonstrates that public funds, when deployed with purpose and urgency, can meaningfully contribute to both job preservation and business continuity. The progress achieved to date signals renewed potential to reposition the Post Office as a viable, service-oriented public entity that meets the needs of South Africans while safeguarding jobs," says Minister Meth.

Minister Meth has been at the forefront of championing institutional renewal and capacity rebuilding across entities within her portfolio. Her leadership continues to be defined by a commitment to accountability, innovation, and the revitalisation of public institutions to better serve citizens. The Minister remains steadfast in her belief that with the right governance frameworks, capable administration, and worker-focused solutions, distressed entities can be turned around into functional and sustainable organisations.

The next phase will focus on strengthening governance, improving operational efficiency, and ensuring that the Post Office delivers on its mandate to provide accessible and reliable services to communities across the country.

In noting that this level of intervention and progress was achieved in just under a year, Minister Meth expressed appreciation for the unprecedented turnaround timeframe for a state-owned company undergoing severe financial and operational distress.

“This reflects the effectiveness of coordinated government action and the importance of decisive leadership in times of crisis. The SAPO experience provides important lessons for government and its social partners. This demonstrates a viable business rescue and recovery model that prioritises worker protection, strategic financial support, and institutional reform," says Minister Meth.

Minister Meth reiterates her commitment to working collaboratively with all stakeholders, including labour, business, and government, to rebuild confidence in public institutions, protect workers, and drive inclusive economic recovery.

The Department of Employment and Labour will continue to refine and emulate this model across other sectors facing distress, ensuring that interventions are both responsive and sustainable.

ENDS//

Media enquiries:

Ms. Thobeka Magcai, Ministry Spokesperson. Email: Thobeka.Magcai@Labour.gov.za 072 737 2205.

Issued by: MINISTRY OF EMPLOYMENT AND LABOUR

DATE: 18 JUNE 2026

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