SASSA cash points to be phased out: How will this affect people?
Starting January 2024, the withdrawal of SASSA grants at post offices and cash points will be phased out.
Hundreds of thousands of South Africans will be affected by the discontinuation of these SASSA payout options which will be completely phased out by 31 March 2024.
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WHY WAS THIS DECISION MADE?
Factors that influenced this decision are a lack of capacity and an increase in cash-in-transit heists. Since 2019, cash payment points have decreased from 9671 to 894, according to GroundUp. According to Postbank, an institution contracted by SASSA to administer the payment of social grants, only around 2% of grant recipients still use cash payment points or post offices.
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BIG IMPACT ON RECIPIENTS IN RURAL AREAS
The National Co-ordinator for Fight Inequality Alliance SA, Wafaa Abdurahman, said that the most impoverished and those in the rural areas would be affected the most. He said that many people from rural areas will have to travel to retailers or ATMs far from their homes, according to DFA. A big portion of their money will be spent on transport. “It’s clear that the gap between the rich and the poor is being exacerbated,” said Abdurahman.
Human rights organisation Black Sash is very concerned about the effect this decision will have on elderly and vulnerable recipients. According to DFA, the Black Sash Regional Manager for KwaZulu-Natal, Evashnee Naidoo, said: “We urge Sassa and Postbank to not lose sight of the 450 000 beneficiaries across the country who will be impacted by this transition. We urge the government to help affected communities to ensure a dignified transition for them to access their grants with as little burden as possible.”
SASSA’S RESPONSE
SASSA spokesperson, Paseka Letsatsi, told GroundUp that it isn’t sustainable to transport cash to a “handful of people” and that the money spent on this could be used more efficiently in terms of development in rural communities. Letsatsi also said payment services are not an obligation according to the SASSA Act. “It’s a service that SASSA may provide, not must,” Letsatsi said.
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