The South African Post Office contributed the largest percentage of job losses, while only 5.5% of PO boxes are in use.
One of the ways to halt a decline in broadcasting, postal and telecommunications jobs will be more legislation for the information and communications technology (ICT) sector, says a key lawmaker.
Chairperson of the portfolio committee on digital communications Khusela Diko on Monday spoke at a briefing by the portfolio committees in the economic sector about the need to create new economic opportunities.
The focus of the briefing was physical and digital information infrastructure and how this needed to be utilised to propel South Africa into a modern age.
Only 5.5% of PO boxes used
Using a report published in March by the Independent Communications Authority of South Africa (Icasa) Diko said the sector had lost 12.3% of its jobs during 2024.
Broadcasting and telecommunications jobs declined by 4.3% and 0.8%, respectively, while the postal service shed 37.4% of its jobs in the last financial year.
The postal service’s revenue last year declined by 22.4% but still recorded R4 billion in revenue.
The South African Post Office’s delivery of registered mail dropped by 39% to just 152 million individual pieces of mail delivered.
Icasa’s report says that the post office has 3.6 million PO boxes registered on its database, but just 5.5%, or 199 000, are generating rental income.
Despite consumers abandoning the post office for private options and an ongoing R250 million business rescue process, Diko said the Post Office must be backed.
“The post office remains a strategic state institution which is a lifeline for many underserved communities. We must leverage its strengths,” said Diko
Telecommunications industry
Icasa’s report showed that telecommunications companies generated R159.3 billion revenue, primarily driven by fibre-based expansion.
Fixed broadband subscriptions almost doubled in 2024 from 1.4 million to 2.7 million, with home and office fibre subscriptions increasing from 1 million to 2.4 million.
However, national coverage is lagging, with access to 5G connectivity available to only 46% of the population and broadband accessible across 82% of the South Africa’s landmass.
The relative disappearance of loadshedding worked against the sector in one aspect, as the sale of battery backups saw a massive decline.
Likewise with generators, where sales dropped from R930 million to R211 million.
The sector also faced losses because of infrastructure theft and vandalism, amounting to R69 million due to theft and R213 million due to vandalism.
Analogue migration 10 years overdue
The portfolio committee chair said legislation governing the sector was outdated and “not fit for purpose in a fast-changing digital environment”.
Diko said inclusive legislation could bring affordable, reliable and universal connectivity for all.
“The priorities will be legislation for the preservation and protection of the media, amendments where necessary to the Electronic Communications Act and the overarching legislation to govern the so-called over-the-top services,” she stated.
However, a signal of intent needed to be sent by rectifying what Diko said was a “national embarrassment”.
South Africa’s analogue to digital migration is a decade past the initial 2015 deadline and is subject to a court interdict and an R800 million departmental request to the National Treasury for the cost of completion.
“No agreement has been reached with the broadcasters in line with the court judgment despite the minister’s assurance to reach a non-litigious settlement,” Diko said.
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