SA Post Office collapse

What the SA Post Office collapse will mean for grant recipients in 2024. Picture: File/Fotor.

SASSA: What SA Post Office collapse means for GRANT recipients

The cancellation of SASSA grant cash payments and the SA Post Office collapse opens the door for private service providers.

SA Post Office collapse

What the SA Post Office collapse will mean for grant recipients in 2024. Picture: File/Fotor.

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.

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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
It’s been a steady, unrelenting collapse for the SA Post Office. Picture: File.

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.

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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.


SASSA gold card
Shoprite offers a hassle-free payment solution for SASSA beneficiaries with expiring gold cards by switching to their free Money Market Account. Image: Supplied.

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.

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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.  


SA Post Office collapse
Picture: File.

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.

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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.

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