Cape Town, 17 March 2025 — Black Sash notes the recent announcement that the SASSA gold cards will cease to function as of March 20. While Postbank and SASSA have communicated that card replacements will continue beyond this date, we are worried that many beneficiaries, particularly the elderly, those living in remote areas, and those facing physical or economic barriers, may still be left without the means to access their grants on time.
Sadly, the replacement process continues to be plagued by several challenges which Black Sash and our partners have witnessed first-hand on the ground:
- Communication and access to Postbank card replacement sites: sites that have been selected by Postbank do not necessarily reflect where SASSA card holders live and even accessing information to your ‘closest’ site has been plagued by inaccurate information on the USSD platform and even on social media. Some sites do not exist, and the retailers share that they are not aware that Postbank card replacements were supposed to be happening at their stores,
- Non/short payments on the SASSA SDA/gold cards. Despite swapping their SASSA gold cards well in advance, many beneficiaries have not received their grants or full value of their grants, leaving them without essential funds for food, transport, and medical care. This failure has caused immense hardship, particularly for pensioners, persons with disabilities, and other vulnerable groups who depend on these payments for survive,
- Massive network glitches that always happen on grant pay days which force Postbank to have to turn away clients and ask them to return when the network is up and running. Beneficiaries who travel from far away do not have the necessary funds to return, except on the next grant pay day and may fall foul of the deadline to replace their cards,
Black Sash urges Postbank and SASSA to take immediate and decisive action to prevent thousands of grant beneficiaries from being left without access to their rightful payments. The ongoing issues of non-payment, inaccessible replacement sites, post office closures, and limited home visits demand urgent intervention. We call for the immediate resolution of payment failures for those who have already swapped their cards, as well as a major expansion of mobile replacement services to reach rural and underserved areas. A clear contingency plan must be put in place for beneficiaries who no longer have a nearby post office, ensuring they can still access their grants.
Additionally, post offices must be adequately resourced with staff, payment facility (system that enables post office staff to make payment) and sufficient cash reserves to handle the surge in demand after the deadline. Home visit services must also be significantly increased to support beneficiaries who are unable to travel to replacement sites. Lastly, the USSD system must be updated in real time to ensure beneficiaries receive accurate information on where they can access their grants. Failure to act swiftly will leave thousands without the financial lifeline they depend on, deepening poverty and distress among the most vulnerable in our society.
We strongly urge Postbank and SASSA to extend their outreach efforts and increase the availability of replacement sites. The current list of sites primarily in larger retailers may not be accessible to all beneficiaries. We recommend expanding mobile or pop-up services in areas with high concentrations of elderly or mobility-impaired beneficiaries.
It is reassuring that Postbank and SASSA have assured beneficiaries that any remaining funds in SASSA gold cards will be safely stored in their Postbank accounts and will be accessible through other withdrawal methods, such as Post Offices or retailer cardless payments. However, the nationwide closure of post offices has created significant barriers to grant access, particularly for the over 1 million beneficiaries who may now rely on these locations for withdrawals after the 20 March 2025 deadline. With fewer operational post offices, many beneficiaries face longer travel distances, higher transport costs, and overcrowding at remaining branches, making it even harder to access their grants.
Additionally, there are growing concerns about whether these post offices will have sufficient cash reserves to accommodate the increased demand. Without proper planning, hundreds of thousands of beneficiaries could be left without access to their grants due to cash shortages or limited-service points. Black Sash urges Postbank and SASSA to ensure that all remaining post offices are adequately resourced, both in terms of staff capacity and cash flow, to prevent disruptions and delays in payments.
Furthermore, while we understand that the Postbank black card will continue to be issued after March 20, we emphasize the urgency of ensuring a smooth transition before the next scheduled grant payment period in April 2025. Beneficiaries who have not received their new cards by April 2025 should not face additional barriers to accessing their funds.
We welcome the introduction of home visit arrangements for bedridden and incapacitated beneficiaries. This service is crucial for those who are unable to travel to card replacement sites. However, we are concerned that the eligibility criteria for home visits may be too restrictive and may leave out individuals who are also facing hardships but do not fit the listed criteria. Black Sash calls for greater flexibility in ensuring that home visits are available to anyone who is unable to access a card replacement site due to illness or physical disability.
Additionally, we strongly advise Postbank and SASSA to simplify the process for beneficiaries seeking home visits, ensuring that there are no additional administrative burdens or fines for families trying to secure this support for their loved ones.
Considering the potential confusion among beneficiaries, Black Sash would like to emphasize the importance of clear communication. It is critical that beneficiaries understand the entire process — from card replacement to how they can access their funds after the gold cards are deactivated. While we appreciate the measures in place to safeguard grant payments, we remain deeply concerned about beneficiaries who may be misled by opportunistic individuals attempting to trick them into changing their banking arrangements. It is imperative that Postbank and SASSA continue to communicate loudly and clearly that only Postbank is responsible for replacing SASSA gold cards with black cards.
We also urge the Postbank and SASSA to consider stronger consumer protection measures to safeguard beneficiaries from fraud and exploitation by unscrupulous third parties.
At Black Sash, we continue to call for a Basic Income Support Grant as a long-term solution to poverty alleviation in South Africa. The replacement of SASSA gold cards with Postbank black cards should not be seen as the only step in ensuring that our country’s most vulnerable citizens receive the social protection they deserve.
As we move forward, it is crucial that South Africa’s fiscal and social protection systems focus on investing in people, ensuring transparent systems, and providing sustainable financial safety nets. Social grant beneficiaries, particularly those who depend on these funds for basic survival, should never be left behind in the race for economic progress. We must continue to focus on improving service delivery and ensuring that all citizens, especially the poor and marginalized, have access to the social protection floor that is their right.
In conclusion, while we acknowledge the progress made in replacing SASSA gold cards, Black Sash urges Postbank and SASSA to ensure that all beneficiaries, especially those most vulnerable, are not left behind. We stand ready to collaborate with Postbank and SASSA to ensure a smoother, more inclusive transition that puts the needs of South Africa’s social grant beneficiaries at the heart of the process.
