Agreement on New Social Grants Payment System in Place

Government Communication and Information System

An agreement between the South African Post Office (SAPO) and the South African Social Security Agency (SASSA) is in place to facilitate a new grants payment system.

Minister in the presidency, Jeff Radebe, recently announced this during a briefing on the Comprehensive Social Security Report.

“This new system while drawing on the resources and capabilities of the South African democratic state, will also make allowance for the participation of other partners such as enterprises and commercial banks, in the payment of social grants to beneficiaries,” he said.

The Implementation Protocol Agreement was signed on 17 November 2017 and a Services Agreement between SASSA and SAPO on 7 December 2017.

“This Agreement gives effect to the implementation of the phasing in of SAPO and the Postbank as a service provider and also as one of the key channels through which grants will be paid.”

According to a consolidated model submitted to the constitutional court, beneficiaries can receive payments through four key channels:

•    Payments through bank accounts of beneficiaries’ choice with commercial banks.
•    Payment through merchants in large retail shops.
•    Payment through the Postbank of SAPO at its outlets countywide.
•    Payments through a second tier of merchants which include village banks, General Dealers, small retail outlets, Spaza shops, cooperatives etc, which are legally registered and South African owned and operated.

The new system will kick in on 1 April 2018.

The minister also declared that no SASSA card will expire in December 2017.

Sabinet Cape Town Office