National Treasury has issued a binding circular requiring all government entities to procure reserved postal services exclusively through the South African Post Office unless granted specific exemptions, while allowing competitive bidding for non-reserved postal services, creating a dual procurement pathway for postal-related contracts.
This restricts competition for reserved postal services and requires departments to justify any deviation, affecting procurement planning and supplier selection across all government entities.
Mandatory procurement of reserved postal services through SAPO with Treasury-approved exemptions only.
Creates a protected procurement stream for SAPO while maintaining competition for non-reserved services; may lead to increased scrutiny of postal service procurement across all entities; sets precedent for other reserved service categories; could affect pricing and service quality monitoring in postal procurement.
Suppliers can still compete for non-reserved postal services; courier and logistics companies should monitor SAPO's capacity and exemption patterns; technology providers for postal tracking/digital solutions may find opportunities.
Departments risk non-compliance if they procure reserved services outside SAPO without exemption; suppliers bidding on reserved services without SAPO partnership face disqualification; exemption documentation requirements create administrative burden.
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