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south africa social grants postbank crisis
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South Africa’s Social Grant Crisis: Lessons from the Postbank Collapse

by Kagiso Petersen
July 10, 2025

In 2024, South Africa’s social grant system faced a crisis when a planned card swap by Postbank went badly wrong, leaving millions confused and unable to access vital funds. Poor communication and rushed changes caused long lines and frustration among elderly and vulnerable people who rely on these grants to survive. The fiasco revealed deep problems in managing and protecting social support, with a looming deadline to find a new payment system by 2025. This crisis threatens not just money, but trust between the government and its people, putting the nation’s promise to care for its poorest at serious risk.

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