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South Africa: UIF Injects $21M into Post Office to Save 6,000 Jobs

South Africa: UIF Injects $21M into Post Office to Save 6,000 Jobs
Wednesday, 21 May 2025 11:01
  • 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.

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