Question NW1001 to the Minister of Social Development

Reply:

a) The number of post office branches that have been closed in the past two years are as follows:

 

SUMMARY OF CLOSED BRANCHES
PROVINCE	2020	2021	Total
Eastern Cape	0	6	6
Free State	0	0	0
Gauteng	6	15	21
KwaZulu Natal	13	3	16
Limpopo	0	0	0
Mpumalanga	0	0	0
North West	0	0	0
Northern Cape	0	0	0
Western Cape	3	5	8
TOTAL	22	29	51

(b)(i) For the medium to long term SASSA is considering introducing payments through mobile phones as an added disbursement option to what is currently available for normal social grants. SASSA is also observing the developments on the Rapid Payment Programme (RPP) which forms part of the Reserve Bank’s vision 2025. Vision 2025 is a strategy initiated by the South African Reserve Bank (SARB) to modernise payment systems and, in turn, improve social and economic conditions for South Africans. A number of workshops have been held between SASSA and SARB to help SASSA gain some understanding on the RPP programme. It is our understanding that SARB has recognised that achieving this vision requires collaboration with other stakeholders to develop innovative solutions that are aligned with Vision 2025’s goals. These goals focus on developing payment systems that are transparent, secure, easy-to-use, financially inclusive, and flexible, so as to make it easier for more of the population to enter the digital economy.

Considering the current challenges experienced by Post Office, the Agency is no longer growing the customer base for Post Office with new Social Grant Beneficiaries. This decision was taken by the SASSA in 2020 to afford the Post Office an opportunity to review their systems and strategies going forward.

(ii) SASSA has institutionalised the payment of social grants as from 2018 when the contract with the previous service provider, Cash Paymaster Services (CPS) came to an end. SASSA ensures that the social grant funds are paid into the beneficiaries’ Special Disbursement Accounts handled by SAPO and into beneficiaries’ private bank accounts on a monthly basis. SAPO only assists SASSA in providing access to the distribution networks for beneficiaries who utilise the SASSA/SAPO card to access their social grant. Of the approximately 7 million accounts opened within the SAPO environment for social grant beneficiaries, only 10% actually utilise the post office branches or cash pay points to access their funds. The remaining beneficiaries already access their grants through the National Payment System at bank ATM’s and merchant point of sale devices.