South Africa Halts the Issuance of New SASSA Payment Cards, Potentially Affecting 28 Million Beneficiaries

The South African Reserve Bank (SARB) has stopped the issuance of new SASSA payment cards, causing uncertainty for over 28 million social grant beneficiaries across the country. This means that South Africa has halted the issuance of new SASSA payment cards, which were supposed to replace the old gold cards used by recipients of social grants from the South African Social Security Agency (SASSA).

The new black SASSA payment cards were introduced by the state-owned Postbank as part of a government plan to improve security and modernize the payment system for one of Africa’s largest social welfare programs. However, the SARB has suspended the rollout of these black cards indefinitely, leaving many beneficiaries unsure about how they will receive their monthly grants.

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SASSA has confirmed that beneficiaries who have not yet received the new black cards can still use their existing gold cards to access their funds. The agency has also advised these beneficiaries to consider opening accounts with other banks of their choice to avoid any disruption in receiving their social grants. Bridget Masango, chairperson of the Portfolio Committee on Social Development, explained that the SARB instructed Postbank, with SASSA’s guidance, to allow the continued use of gold cards while beneficiaries transition to alternative banking options.

This suspension comes amid ongoing challenges in South Africa’s social grant system, including administrative problems, fraud, and infrastructure issues. Previous efforts to digitize services and reduce reliance on physical service points have not been very successful, as many beneficiaries prefer in-person assistance and are wary of digital platforms.

The transition from gold to black cards was a key part of SASSA’s efforts to modernize the system. However, the SARB and Postbank have not provided a clear timeline for when the issuance of the new black cards will resume. SASSA remains hopeful that all beneficiaries will continue to receive their payments without interruption. Paseka Letsatsi, a SASSA spokesperson, emphasized that beneficiaries have the right to choose any bank they prefer and can visit their nearest SASSA office for help if needed.

Despite these assurances, many beneficiaries, especially those in rural areas, face difficulties such as long queues, limited access to bank branches, and inconsistent communication from officials. These issues could make it harder for some people to switch to alternative banking options or to receive their grants smoothly during this period of uncertainty.

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South Africa stops the issuance of new SASSA payment cards, causing a pause in the rollout of the Postbank black cards. Beneficiaries are encouraged to continue using their gold cards and to open accounts with other banks if possible. The government and SARB are working to ensure that social grant payments continue without major disruptions while looking for solutions to the challenges in the system.

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