Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Post Office set to sign Sassa payments deal

    Post Office set to sign Sassa payments deal

    By Ray Mahlaka7 September 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Image: Steve Buissinne

    If the embattled South Africa Social Security Agency (Sassa) makes good on its promise, the South African Post Office will be contracted to take over social grant payments from incumbent Cash Paymaster Services (CPS) in the next seven days.

    Sassa told parliament’s standing committee on public accounts (Scopa) that the Post Office will be contracted to distribute social grants by 13 September, according to committee chairman Themba Godi.

    The agency was hauled before Scopa on Tuesday night to give an update to MPs on the process and timeline to phase out CPS’s contract, in line with a constitutional court order.

    By end of March 2018, Sassa must terminate its contract with CPS and have an alternative way to distribute social grants. It appears that by 1 April 2018, the Post Office will be responsible for distributing social grants to more than 10m beneficiaries.

    The Post Office has over 2 000 outlets across the country and operates Post Bank, which has 5.8m clients with savings accounts.

    Godi said the Post Office was supposed to be contracted by 31 August, “but there were delays in technical evaluations and due diligence processes”.

    Although the Post Office, led by CEO Mark Barnes, is being punted as the next paymaster, Godi said it’s not clear whether Sassa intends giving the state-owned entity the entire contract or a portion of it. Barnes was not available to comment at the time of publishing.

    The type of contract to be awarded to the Post Office will be made clear when its technical systems are evaluated for readiness in the coming weeks.

    Barnes has expressed interest in the Post Office taking over the social grant system, which he believes will be a cost-effective measure for the fiscus. The Post Office has over 2 000 outlets across the country and operates Post Bank, which has 5.8m clients with savings accounts.

    Finding a solution

    Although the Post Office has not signed a contract with Sassa, it has an agreement to collaborate with the agency in finding a solution after CPS is phased out. This agreement was supported by national treasury.

    The agreement emerged after former Sassa CEO Thokozani Magwaza was fired by social development minister Bathabile Dlamini in July. Days before Magwaza left Sassa, he sent a formal letter to Barnes detailing the agreement between Sassa and the Post Office.

    Once they are contracted, we need time lines on how they prepare to deploy their systems by at least November

    The Post Office is seen as an interim solution as the long-term plan is for Sassa to takeover the grant system instead of outsourcing this responsibility. Sassa officials have estimated that it will cost R6bn and take five years for the agency to take over social grant payments.

    Godi said the Post Office has to sign a contract before the end of September in order to prepare its systems. “Once they are contracted, we need time lines on how they prepare to deploy their systems by at least November. Some testing and an adequate phasing out period from the CPS contract has to happen.”

    He believes that the Post Office will be the best option to pay social grants as it’s a government institution and the personal data of grant recipients “would be in safer hands”.

    CPS has been accused by civil rights group The Black Sash of using the personal and confidential information of grant recipients to cross-sell financial services products such as funeral policies, prepaid airtime and electricity. This information is at CPS’s disposal by virtue of it being responsible for grant payments.

    • This article was originally published on Moneyweb and is used here with permission


    Bathabile Dlamini Mark Barnes Post Office Sassa Themba Godi top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSpaceX to launch secret spy craft, weather permitting
    Next Article Nokia 8 Android flagship launched in SA

    Related Posts

    Government seeks private sector partners to rebuild broken Post Office

    Government seeks private sector partners to rebuild broken Post Office

    19 November 2025
    Fingerprints, facial scans now mandatory for Sassa grants

    Fingerprints, facial scans now mandatory for Sassa grants

    27 August 2025
    TechCentral Nexus S0E4: Takealot's big Post Office jobs plan

    TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

    4 July 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}