The South African Post Office (SAPO) is to spend R529 million on infrastructure projects over the next financial year, of which a portion will be spent on IT-related projects, as it moves to align IT with its business objectives.
In its annual financial results to end-March, the group said it is moving ahead with several technological projects in a bid to transform to a technology-driven operation. Its changes come at a time when the global arena market is characterised by a decline of letter mail.
Its 2007 financial year capital expenditure would include a group-wide installation of SAP and Track & Trace. It would also spend on IT infrastructure, point-of-sales systems and further mail-sorting equipment, it said.
Announcing the capital expenditure on Wednesday, CEO Khutso Mampeule said the projects were aimed at bringing more people into economic contact with the world as it rolls out more addresses.
The point-of-sale project, which started last year, is scheduled for completion in the coming financial year. SAPO is also re-implementing SAP to "ensure the organisation`s management of its processes, people and customers is integrated efficiently," said a statement.
"Embracing innovation and increasing the application of technology are two major corporate cultural processes that have been initiated to transform the organisation into a technology-driven company, which is vital for our future," said Mampeule.
SAPO also seeks to implement an additional 700 public Internet terminals and indicates discussions around collaboration with the Universal Services Agency on connectivity have started.
Looking back
The Post Office posted an operating profit of R286.8 million, up 112% from R135.1 million the previous year. This, it said, was as a result of a 6% increase in operating income to R4.6 billion from R4.37 billion. In the next financial year, it aims to improve operating profit by 31% to R354 million. Revenue is expected to increase 7% to R5 billion.
It spent a total of R393 million in capital expenditure, of which R123 million was on network infrastructure, R66 million on equipment and furniture and the bulk (R204 million) was on IT infrastructure.
In the last financial year, biometric recognition indicators were registered for over 217 000 social grant beneficiaries. The mail-delivery group also completed the mail-sorting automation programme and completed the implementation of its electronic bill presentation system - Truebill - and a hybrid mail pilot project.
The group trained more than 1 000 learners in ICT skills by putting them through courses. During the same time, it trained 18 e-cadres, who will assist the public in using SAPO`s new technology.
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