Israel’s postal service to be privatized, communications minister announces

This marks the first time in Israel's history that the postal service will be managed by a private company.

 Illustration of an Israeli post truck. March 6, 2023.  (photo credit: MOSHE SHAI/FLASH90)
Illustration of an Israeli post truck. March 6, 2023.
(photo credit: MOSHE SHAI/FLASH90)

The privatization of Israel's postal service was announced by Communications Minister Dr. Shlomo Karhi in a statement on Thursday.

"We worked extensively to complete the privatization as soon as possible, to open the market to real competition, and today, this is happening," he said.

This is the first time in Israel's history that a private company will manage the postal service. 

The postal service was purchased in May of this year by municipal service provider Milgam for NIS 461 million ($125 m.) after a bidding war between 15 companies, including the Rami Levy company, which came in second place at NIS 380 million ($103 m.).

Milgam deals in the maintenance of water and sewer systems, management of parking areas, IT solutions, and more.

 A sign of the Israeli Post in central Jerusalem, on January 04, 2022.  (credit: NATI SHOHAT/FLASH90)
A sign of the Israeli Post in central Jerusalem, on January 04, 2022. (credit: NATI SHOHAT/FLASH90)

“I am confident that the winner will bring new management, a new approach, and most importantly, better and faster quality service for Israeli citizens,” Karhi said. 

The Israel Post

According to the Communications Ministry, Israel Post has been caught up in a financial crisis several times since 2006, which has severely affected public service for the past 20 years.

To better optimize this service to the public, the ministry has also opened the postal sector to full competition, allowing for “freedom of action to provide new services and adapt the service delivery format to the digital age.”

“Good luck also to the employees, led by union chairman Shimon Pargon, who together with the new management will lead the company to the forefront in quality and service," Karhi said.

“Israel Post employees across the country will strive with God's help to navigate the postal service to success and growth,” Paragon said.


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Accountant General Yali Rothenberg also praised the move, saying, “Completing the privatization process is also a beginning and an opportunity for the company to set out on a new path that will allow Israel Post to become an efficient and innovative organization for the benefit of all Israeli citizens.”