The US made the first move. In July, Washington scrapped the duty-free allowance for international parcels under $800, forcing postal operators to collect and pay American duties before sending out packages.
South Africa has now responded. The Post Office (SAPO) has suspended all outbound parcels containing goods to the U.S. until a new system is in place. Parcels stuck at the Post Office’s Germiston International Mail Centre are now being returned to the senders. Only letters, documents, and military mail are still moving.
SAPO’s shaky ground. The suspension comes as SAPO struggles to survive. Years of mounting losses and a decline in revenue from over $305 million in 2019 to just over $90 million in 2024 have left the state-owned company under business rescue. Taxpayers have already spent over $11 million on bailouts. Even with government injections and debt write-offs, SAPO is struggling to stay afloat.
For many South Africans, the impact may seem small. The Post Office has been in decline for years, with private couriers such as Aramex, City Logistics (Pty) Ltd., and United Parcel Service of America, Inc. (UPS) carrying the bulk of South Africa’s Courier, Express, and Parcel (CEP) market, valued at $223.6 million.
SAPO’s new rules may look like a practical response to the US’s new regulations. But for an institution already on its last legs, cutting services risks eroding what little relevance it still holds.
