17 June 2025

The ANC Study Group on Communications and Digital Technologies has been reviewing the briefings from the various entities managed by the Department of Communications and Digital Technologies which have come before the Portfolio Committee. 

Today, there were briefings from the PostBank, South African Post Office (SAPO) and .za Domain Name Authority (ZADNA). In the main, the focus was on analysing the revised Strategic Plans and Annual Performance Plans of these entities. 

President Ramaphosa signed the Postbank Amendment Bill into law in September 2023, formally transferring the Postbank’s shareholding from the South African Post Office to the government. This allowed for the creation of a Bank Controlling Company – the new holding company of a bank – opening the way for Postbank to become a fully-fledged state-owned banking operation in the country.

Following this, the Study Group has been closely involved in ensuring the recapitalisation of SAPO and Post Bank. 

With regards to the South African Post Office, we welcome their drastic turnaround plan which sees the entity move from a net loss to a net profit by 2029. We would like to see the operations of the SAPO in rural areas being prioritised for growth and development and to drive rural economic development. We envision a capable SAPO that can sustain itself. The presentations of these annual performance plans instil in us the confidence, that with adequate support from the Department, SAPO can be recapacitated and set for success. We are also in support of the diversification of the revenue streams for SAPO to comprise more of the e-commerce space and taking advantage of the last mile delivery space.

Whilst we acknowledge that Postbank will be entering an already highly competitive banking market, we remain in support of the creation of a State Owned Bank and realize that this framework will require the support of the Post Office. Postbank’s primary objective will be to offer affordable financial services to communities not catered for by traditional retail banking, SMMEs and the public sector. There are about 6.5 million people in South Africa who are unbanked, and 15 million existing customers that are under-banked. In addition to this, there is about R12 billion found outside the formal banking system, excluding stokvels, which can be addressed. We believe that Postbank can fill this gap, create inclusionand can also have a developmental impact which will address issues of growth, making credit available and provide financial education. It is also the best vehicle for state payments such as SASSA and NSFAS etc. 

We are therefore closely monitoring the variation notice of the Postbank and call upon all stakeholders to bind together and ensure the continued compliance of Postbank. We call for the full license authorisation of PostBank so that it can compete with the commercial banks of South Africa, and that it must be given the same latitude. We also call for the support of Postbank by the department to ensure its growth and sustainability. 

As far as .ZADNA is concerned, we believe that ZADNA plays a crucial role in the digital landscape of South Africa. Managing and regulating the .za domain name space, ensuring its security, stability, and accessibility to all ensures that we promote the growth and development of the.za namespace, empowering individuals and businesses to leverage the benefits of the digital landscape. The ongoing effort to “digitise the undomained”, ensuring that the benefits of the digital landscape are accessible to all, must be supported. 

It is important that we recognise that the .za namespace is one of the biggest in the world and one of the strongest in terms of security. The benefit of funds used to register .za namespace bolsters the country’s economy as the funds are re-invested and used to build infrastructure.

The ANC appreciates the comprehensive presentations of these entities and we are mindful of the acute challenges we face. We will continue to foster partnerships and engagements so that we are able work together towards building digitally enabled and economically empowered communities.

Issued by the Whip of the ANC Study Group on Communications and Digital Technologies, Hon SI Subrathie.

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