The Congress of South African Trade Unions (COSATU) is encouraged by the Postbank’s securing its long-sought licensing by the Financial Sector Conduct Authority.  This is an important milestone towards enabling the Postbank to become a fully-fledged and now licensed state bank.  This achievement lays the foundation for a state bank geared towards ordinary consumers, in particular the poor and marginalised.  

Many workers, the poor, the elderly, persons living with disabilities, those residing in informal and rural areas, and other vulnerable persons have long been redlined by mainstream commercial banks leaving them unable or struggling to access banking and financial services.  Our banking and financial sector is rife with anti-competitive and monopolistic behaviour, a tendency to milk consumers with excessive bank charges, exploit banking workers with poverty wages, and an ambivalence towards supporting job creation and local investments.

Parliament adopted the Postbank Amendment Act in 2023 laying the foundation for the full operationalisation of the Postbank.  This was a necessity for it to be able to fully enter the banking and financial services sectors. It will inject competition into sectors needing a shakeup.  It will help workers and the marginalised access banking and financial services.  The Postbank with its symbiotic relationship with the Post Office, will help to repivot, stabilise and grow the Post Office and ensure disadvantaged communities can once again access and rely upon its services. 

Whilst supporting this long overdue licensing of the Postbank, if it is to meet its developmental objectives, government will need to provide it with the necessary support, including recapitalisation, and the appointment of competent management for the Postbank and Post Office to grow and to thrive.  Equally government institutions need to support the Postbank as their preferred banking service institution.

For the Postbank and the Post Office to be firmly placed upon the path to recovery, they need to be accompanied by clear turnaround plans.  For the Post Office this needs to be based upon expanding the range of products it offers consumers; including courier services, access to SASSA payments and other government services. It cannot be based upon retrenching thousands of employees, slashing their wages or defaulting upon their tax and third-party obligations.  The Postbank and Post Office cannot be sustained by empty chairs and demoralised workers.

The turnaround of other embattled state-owned companies, from Eskom to Transnet, Metro Rail and the South African Airways proves that with competent management, removing corrupt and criminal elements, filling frontline vacancies and recruiting critical skills, investing in infrastructure and other capacity, and financial relief; they can be rebuilt and once again become contributors to economic growth and jobs.

It is critical that the Department of Communications and Digital Technologies with the support of Treasury and other state organs, provide the Postbank with the necessary assistance to become a successful state bank. 

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za