We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

The problem with the distribution of 17-million social grants every month is that it is hard to do, at least if it’s done properly. The difficulty is the requirement that every recipient be validated through biometrics. This requirement, which Sassa (South African Social Security Agency) insists on as an anti-fraud measure and to prove that recipients are still alive, effectively prevents the mainstream banking system from taking on the task. There are two distinct components to grant distribution, each with their own challenges. Between 60% and 90% of the R15bn in grants paid every month are paid into bank accounts. The balance is paid at paypoints and partner retailers in cash to recipients. The paypoints tend to be in rural areas, where access to banks is difficult. They are massive logistical exercises with the obvious security challenges. Bank account payments are not straightforward either, because of the biometric requirement. When the initial tender was made, the banks said ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.