SASSA: What SA Post Office collapse means for GRANT recipients

The ongoing SA Post Office collapse has left the door open for private service providers to step in with SASSA grant payments. What’s currently seen as a headache for the South African Social Security Agency could soon prove a blessing as competition between private companies heats up.

TRENDING: HAPPY ending after Christmas ACSA baggage snafus

As reported by Daily Investor, several private companies are interested in facilitating the payment of social grants. With the SA Post Office collapse on the brink, Shoprite and Tyme Bank are believed to be frontrunners.

SA POST OFFICE COLLAPSE

The SA Post Office recently announced it would be phasing out cash payments in the coming year, aiming to cease them fully by the end of March 2024. In light of the SA Post Office collapse, it’s entered business rescue, with plans to slash 600 branches and reduce the employee headcount to 5 000 staff.

ALSO READ: Careers in 2024: The SEVEN most in-demand jobs in SA

Talking to Daily Investor, executive director of Denker Capital, Kokkie Kooyman, said whether the government realises it or not, it is slowly being ‘privatised in stealth.’ Therefore, government should just shop for the best offer to facilitate grant payments.

PRIVATE-SECTOR KNOWHOW

Having the private sector cover for the SA Post Office collapse would raise government revenue in the facilitation of social grants, state pensions and Social Relief of Distress (SRD) grant. This will no doubt increase the efficiency and reliability of the payment system.

ICYMI: South African words that made the Oxford Dictionary in 2023

However, civil society has still raised red flags over the necessary widespread privatisation. It says it will negatively impact tens of thousands of old-age pensioners living in rural areas who cannot simply open a bank account on a whim.  

INCREDIBLY LUCRATIVE

Kooyman insists there is much interest from financial service providers as grant payments are incredibly lucrative. South Africa has upwards of 18-million social grant recipients who transaction every month. Facilitators of grant payments will receive billions of Rands through deposits, savings and transactional fees.

ALSO READ: ESKOM sets dismal load-shedding record this Christmas

Shoprite is a frontrunner for this role in light of the SA Post Office collapse. It’s offering a free switch to its Money Market Account for grant recipients. The added benefit of this would see increased spending in Shoprite stores for things like electricity, airtime and products.

NEXT READ: Important INFO: 2024 SASSA Old-Age Pension Grant increases

What do you think of the SA Post Office collapse? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates.

CLICK HERE TO READ MORE ARTICLES FROM RAY LEATHERN