South Africa’s Unemployment Insurance Fund (UIF) will inject $21 million into the South African Post Office (SAPO) under the Temporary Employer-Employee Relief Scheme (TERS).
The funding aims to preserve 5,956 jobs amid economic crisis and 32.9% unemployment in Q1 2025.
SAPO must meet strict compliance standards and implement a recovery plan to access the funds.
The South African Unemployment Insurance Fund (UIF) will allocate $21 million (CFA12.7 billion) to the South African Post Office (SAPO) to prevent mass layoffs under the Temporary Employer-Employee Relief Scheme (TERS).
A memorandum of understanding was signed between UIF and SAPO to facilitate the disbursement of 381 million rand ($21.25 million) over six months. The funds are expected to preserve 5,956 jobs and support SAPO’s recovery efforts, according to Employment and Labour Minister Nomakhosazana Meth.
“This is a bold and necessary step to protect workers and restore faith in our public institutions,” the Minister stated, adding that SAPO would be subject to strict governance, auditing, and compliance requirements, including the implementation of a recovery plan.
The funding comes as SAPO faces serious financial difficulties. In July 2023, Communications and Digital Technologies Minister Mondli Gungubele placed the organization under judicial supervision due to high operational costs, inefficiencies, and lack of modernization.
The initiative forms part of UIF’s broader job-preservation strategy as South Africa confronts a sustained economic crisis. The national unemployment rate stood at 32.9% in Q1 2025, reinforcing the urgency for employment-focused interventions.
Authorities emphasized the importance of collaboration with social partners to drive inclusive economic growth and worker protection.
• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...
Egypt signs deals to import up to 290 LNG cargoes over 30 months, starting in July Trafigura,...
(AfDB)-Egypt's first integrated solar and battery storage plant will deliver dispatchable clean ener...
Lion Group to explore and exploit gold, copper, and manganese in Algeria Malaysian firm plans...
This launch is a significant milestone that highlights Rwanda's ongoing digital transformation. With...
Key Highlights Niger’s government has seized full control of SOMAÏR, its only active uranium mine, stripping Orano of its 63.4% stake. Officials...
Key Highlights • Somalia inaugurates its first stock exchange, the National Securities Exchange of Somalia (NSES), in Mogadishu. • NSES will start...
Key Highlights: • Olam Agri to onboard 5,000 small-scale farmers in Kwara State under a new soybean supply initiative. • Partnership with IDH and...
Key Highlights• Ivory Coast ends TSDAR, a petroleum tax introduced in 2018 to reduce SIR’s debt.• Government to redirect two-thirds of revenue to...
Tucked away in northeastern Chad, deep in the heart of the Sahara Desert, the Ennedi Massif stands as an extraordinary natural and cultural marvel. This...
Kakum National Park is a protected area located in Ghana’s Central Region, near the city of Cape Coast. Established as a forest reserve in 1931 and...