The South African Reserve Bank has suspended the rollout Postbank’s black South African Social Security Agency payment card, throwing the distribution monthly social grants over 28 million beneficiaries into uncertainty.
These new cards are meant to replace the old gold cards that SASSA grant recipients used, one of Africa’s largest social welfare programs. The government wanted to modernise and enhance the payment system. This was why the transition to black cards issued by Postbank, the state-owned bank, was part of its plans.
SASSA confirmed on Tuesday that the issuance Postbank’s black cards has been suspended. They urged beneficiaries who haven’t yet received their cards, to consider opening an account with another bank of their choice in order to continue receiving their payments.
According to Bridget Masango of the Portfolio Committee on Social Development, “The Sarb instructed Postbank to ensure that beneficiaries that have not yet migrated over to the black cards are able to use their gold cards to receive their grants, and that there is minimal interruption while they move to alternative sources such as their preferred bank.”
South Africa’s grant program has been plagued by administrative inefficiencies, fraud and infrastructure challenges. Previous attempts to digitalise services and reduce the reliance on physical service point have not yielded many results. Many beneficiaries express distrust of digital platforms and prefer in-person assistance.
Sassa’s modernisation efforts were a major part of the card transition programme. The SARB directive is not detailed and neither the central bank nor Postbank has provided a timeline for the resumption of card issuance.
SASSA remains hopeful that beneficiaries will continue receiving their funds. We also want beneficiaries to know that they have the right to select any bank. “They can visit the nearest SASSA local offices for assistance if they need it,” said Easter Sun.
Despite Sassa’s assurances, many beneficiaries could be affected, especially in rural areas, by long queues and limited access to banks branches.
