SA Post Office Wants Couriers Fined for Delivering Small Parcels and the Money Sent to Them

The South African Post Office (SAPO) wants the communications regulator to punish courier companies that deliver small parcels and hand over the fine money to them.

In its latest business rescue report, the state-owned postal service asked the Independent Communications Authority of South Africa (ICASA) to fine private couriers that deliver parcels weighing less than one kilogram, claiming that such services fall under its exclusive mandate.

SAPO says this monopoly, granted under the Postal Services Act of 1998, gives it the sole right to deliver lightweight parcels, letters, and postcards. Yet, over the past decade, fast-growing courier companies like Takealot, PostNet, and members of the South African Express Parcels Association (SAEPA) have allegedly eaten into that space, a move SAPO argues is both illegal and harmful to its survival.

The 1kg Battle: Couriers vs. the State

At the heart of the dispute lies a simple number, 1 kilogram.

SAPO insists that parcels lighter than that belong under its control. Couriers, on the other hand, argue that the market has changed drastically since the 1990s, and consumers should have the freedom to choose faster, more reliable services.

This legal tug-of-war isn’t new. It dates back to 2018, when the Post Office first complained to ICASA about couriers violating its “reserved postal services.” The regulator sided with SAPO in 2019, ordering PostNet to stop delivering parcels under 1kg within 90 days.

PostNet and others fought back, filing review applications in 2020. Years later, the litigation continues with the parties now preparing their final legal arguments.

According to business rescue practitioners Anoosh Rooplal and Juanito Damons, who are steering SAPO through its restructuring, the company filed its latest replying affidavit in August 2025. The courier association requested an extension to file its arguments by December 2025, pushing the already drawn-out case further into the future.

“The matter is still ongoing,” the BRPs confirmed.

SAPO’s Proposal: Fines for Couriers, Funds for the Post Office

In a move that has raised eyebrows in both the logistics and business sectors, the Post Office now wants ICASA to go further than just enforcing compliance.

It has proposed that ICASA impose fines on courier companies found to be in breach of the 1kg rule and that those fines be ringfenced for SAPO’s benefit.

In other words, not only should couriers stop delivering small parcels, but any penalties they incur for doing so should directly support the struggling postal service.

Industry observers have called the idea “desperate” but “predictable,” noting SAPO’s financial freefall and declining relevance in a digital-first economy.

Government Weighs Review of SAPO’s Monopoly

Even as SAPO clings to its decades-old legal protection, the national government is rethinking whether such a monopoly still makes sense in 2025.

Earlier this year, Communications and Digital Technologies Minister Solly Malatsi published a notice in the Government Gazette announcing a review of SAPO’s exclusive rights over reserved postal services.

Under Section 16(8) of the Postal Services Act, the minister must review this exclusivity every five years. The review could determine whether SAPO should continue enjoying a monopoly over letters and small parcels or if the growing courier market should be liberalised to encourage competition and innovation.

Reserved services under the law include:

• Delivering letters, postcards, and parcels up to 1kg

• Issuing and selling postage stamps

• Providing roadside collection and mailboxes

Hope in KwaZulu-Natal: “SAPO Can Still Survive”

While national debates rage on, SAPO’s regional teams say the company still has a fighting chance if its monopoly is protected and modernised.

During a Parliamentary oversight visit to SAPO’s KwaZulu-Natal headquarters in February 2025, management expressed cautious optimism. They argued that protecting their legislative advantages, coupled with a shift toward e-commerce deliveries, could help the organisation find new life in the digital economy.

Portfolio Committee member Sibongiseni Vilakazi noted that the discussion became “animated” as staff insisted the Post Office could still generate sustainable income.

“There was genuine belief that SAPO can stand on its own two feet, if its monopoly and income streams are secured,” Vilakazi said.

Public and Industry Reaction

On social media, South Africans have had mixed reactions. Some believe SAPO’s request for fines shows how far the once-proud institution has fallen. “Instead of competing, they’re begging for penalties,” one user wrote on X (formerly Twitter).

Others sympathised, saying the Post Office needs protection from aggressive private players that dominate the delivery market. “If couriers are breaking the law, then yes fine them,” another user argued.

Industry insiders, however, warn that SAPO’s legal strategy could backfire. “Trying to reclaim a monopoly in an era of e-commerce giants is like fighting gravity,” a logistics analyst told Joburg ETC. “They need innovation, not litigation.”

As SAPO fights to keep its 1kg monopoly and asks for fines to be funnelled its way it’s clear that the postal service is standing at a crossroads.

Caught between financial collapse, changing consumer habits, and government scrutiny, the Post Office must decide whether to reinvent itself for a digital age or remain locked in courtroom battles over a law written in another era.

The South African Post Office wants ICASA to fine couriers for delivering small parcels and hand over the proceeds. While SAPO argues it’s defending its legal monopoly under the Postal Services Act, critics say the move reflects deeper struggles within the state-owned entity and a growing disconnect from how South Africans send and receive parcels in 2025.