South African Welfare Payments Seen as Secure Even as Distributor Falters
- Payouts possible at outlets linked to National Payment System
- South Africa is due to spend 3.6% of GDP on welfare this year
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Welfare payments in one of the world’s most unequal societies will be secure despite the provisional liquidation of the South African Post Office, where many beneficiaries accessed their monthly government stipends.
Postbank, which was spun out of the embattled state-owned Post Office in 2019, will be able to continue disbursing funds, Bongani Diako, spokesman for the lender, said by phone on Wednesday. Instead of going to the nearest Post Office, beneficiaries’ social grants can be paid at any outlet, such as retailers and commercial banks, linked to the National Payment System, according to Diako.
