1. SMME OPPORTUNITIES IN THE POST OFFICE Trends in Postal Sectors 1

2. 1. Background 2 Postal Services are the most basic and common means by which messages are communicated and goods delivered. They also form a basic link serving the entire population and also being an important medium of communication. The Postal Services sector contributes approximately 3% to the GDP. This includes Courier and Express Parcel market. A basic Postal Service is the right of all citizens. Universal Service obligations ensure that services are affordable, efficient and address quality service imperatives.

3. 2. Main Activities Mail Delivery (Pick-up, sorting, transport and delivery of letter post, mail parcels and packages) by postal services operating under Universal Service obligation. Retail Services Banking Services Agency Services (Motor Vehicle License renewals, Account Collections on behalf of third parties) 3

4. 3. Business Opportunities Mail Delivery creates opportunities for construction of postal infrastructure, retail infrastructure, backbone infrastructure (IT and broadband) and logistics infrastructure. The Post Office has more than 1500 Post Office outlets and more than 800 Postal Agencies countrywide. Attention is paid to security of the system to ensure that letters, parcels and other postal items are not pilfered, damaged or lost. Transportation (Distribution ) has given rise to small businesses that supply fuel, tyres, repairs, maintenance and related products. 4

5. 4. Business Opportunities (Cont) SMME’s are currently engaged in the manufacture of Post Boxes, Letter Trays, Mailbags, Rolltainers, Twine, Seals, Labels, Bicycles e.t.c. Opportunities in the Banking and Retail sphere include Printed Matter ( Thermal Rolls, Forms, Envelopes, Labels) Installation and maintenance of IT networks. Efforts are underway to establish the Post bank as a separate entity within SAPO Group. All financial functions and payment products will be aligned under the division to provide more financial services to all South Africans and enlarge opportunities for service providers to do business with Post bank. 5

6. 5. Business Opportunities (cont) The Post Office noticed during the period of recent industrial action that it needs to invest in more modern and advanced mail and parcel sorting equipment. This will increase efficiencies. Any innovation is an opportunity for service providers. The distribution of Set Top boxes can be done easily through the Post Offices national footprint. This will provide work for SMME’s. The Postal address system for home and location address is still a necessity to link a person with the services he requires. Responding to the demands of the digital age on Postal services will require another kind of service that must be exploited by ICT service providers. 6

7. 6. Special Programmes Enterprise and Supplier Development This program benefits SMME’s, Black women and Youth. It fosters entrepreneurship and innovation through skills development and business support systems. It increases the capacity of SAPO SMME’s to meet not only SAPO’s but other customers demands, thereby fulfilling the objectives of self sustainability. Development of the second economy (Joint Ventures and Subcontracting) The Post Office partners large enterprises with emerging ones to foster enterprise development. The Infrastructure Refresh Program has seen four large original equipment manufacturers (OEM) being partnered for skills development with small enterprises. Small enterprises benefit each to the value of 25% of the project 7

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