The express and courier industry faces tough challenges, including an ongoing legal tussle with the SA Post Office (Sapo), over the exclusive rights to deliver sub-one-kilogram parcels in the country.What was initially just a bone of contention with the South African Express Parcel Association (Saepa) and PostNet has developed into an extended court battle. Initiated in 2018, it revolves around the Postal Service Act. This legislation specifies that the government entity holds the exclusive right to offer delivery services for letters, postcards, printed materials, small parcels, and other postal packages weighing up to 1kg.Saepa and PostNet are on record stating they disagree with the Post Office's take on the Act, which is applied by the Independent Communications Authority of SA (Icasa), and that, if correctly interpreted, allows couriers to deliver sub-one-kg packages.This has been reiterated on numerous platforms by Saepa CEO Garry Marshall, who maintains that it is only in the sphere of essential postal services that Sapo has a monopoly.In 2019, Icasa ruled in favour of Sapo, ordering the courier industry to cease delivering any small parcels, resulting in Saepa and PostNet taking the matter to the High Court, where an interdict was filed, ensuring that couriers could continue to deliver and handle more minor items. Since then, Takealot has joined forces with Saepa and PostNet as the impact of Sapo’s interpretation of the Act will have far-reaching consequences for the e-commerce sector of the country at large.If a court should rule in favour of Sapo, it will mean that any package in South Africa weighing less than 1kg will have to be transported via the Post Office, which has faced dire financial stress for years. The SOE owes its creditors billions, and in February this year, a judgement was issued to place Sapo under provisional liquidation.Upon entering the legal proceedings, Takealot publicly expressed concerns about the potentially severe ramifications of mandating Sapo to handle all parcels weighing 1kg or less. This move, they argued, wouldn't just impact major e-commerce entities like Takealot, but would also adversely affect numerous small businesses that play a crucial role in driving e-commerce growth in the country. Despite running its courier service, Takealot emphasised that a significant portion of its products and daily deliveries would fall under the category over which the Post Office claims are its rights.In the meantime, the Department of Communication and Digital Technologies has introduced an amended Post Office Act to Parliament. While yet to be adopted, this new bill aims to change Sapo’s mandate, allowing it to expand its services and offerings, particularly in the e-commerce and courier space.
