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No. 37261

GOVERNMENT GAZETTE, 24 JANUARY 2014

class, age or geographical location. The overarching goal of the policy framework was to
ensure a more accessible, equitable, efficient, and effective postal service.

The objective was to balance the provision of basic universal postal services

to

disadvantaged rural and urban communities, with the delivery of service capable of meeting
the needs of a growing South African economy.

The fundamental policy principles were equal access to a reliable basic letter service
regardless of physical location, at a uniform rate of postage and at an affordable price. The
White Paper provided for the achievement of universal service by structuring the market into
reserved and unreserved markets, and ensuring that SAPO receives a degree of monopoly
protection, as it rolls out universal service obligations in the postal sector. These obligations
are included in the licence conditions of SAPO. The licence issued in 2012 (effective from
2008) makes provision for a monopoly in a reserved sector, as well as defining universal
service obligations by outlining under-serviced areas in schedule 1 of the licence and then
addressing roll-out to meet these obligations in schedule 2 of the licence.

All other services, including parcel and express services, and any future services differing

from those defined as reserved, are categorised as non-reserved and are subject to
competition and market forces. However,
obligations.

these licensees do not have the any licensing

The White Paper envisaged the corporatisation of the Postbank, which would be wholly
owned by Government that could encourage a culture of savings among its target clientele.
A three-phased restructuring plan was implemented resulting in the Postbank as an
autonomous fully-fledged savings bank, owned by the Post Office. In the interim period,
Postbank was to operate as a profit centre, and to continue to be exempt from registering as
a bank under the Banks Act. To this end, the Postbank Act was promulgated and is intended
to provide the financial services as envisaged in the policy.

3.3.2 Growth and outlook
According to StatsSA, the value of postal and courier activities in the 2009/10 year was R9,1
billion. In the same period, SAPO reported total revenues of R5,5 billion. Using these

revenue figures, SAPO has a total market share of 61% of the total postal and courier
services.

SAPO was issued with a 25-year licence in 2001 and it is the only licensee operating in the
reserved market (defined as delivering any postal items that weigh less than a kilogram).
This exclusivity was confirmed in SAPO's amended licence conditions gazetted in 2012. Its
monopoly in the reserved areas was confirmed until 2017.

In terms of the unreserved market, ICASA has a total of 300 registered courier services.
However, the South African yellow pages shows that there are just over 2 000 listings under
`courier services' in South Africa. It should be noted, however, that this listing does not
provide the reader with an accurate picture in relation to which companies are operational or
not. However, given the revenue data supplied by Stats South Africa, the rest of the sector is
worth R4,5 billion.The SAPO revenue rose from R1,9 billion in 1994 to R5,9 billion in 2012,
a 208% increase. This trend is evident from the figure below.

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