The South African Post Office (Sapo) will now be handling the core functions of the new social grants system.
Minister Jeff Radebe has confirmed on Sunday that Sapo and the South African Social Security Agency (Sassa) had signed a landmark deal.
The Post Office will be the central holding account for electronic services; be responsible for the onboarding of new beneficiaries, biometric authentication and developing the IT system.
According to Minister Radebe, commercial banks and retailers will have an increased role in the new system.
He spoke to Stephen Grootes on the Breakfast Show.
This is in fact a very landmark decision that indicates that we are committed in ensuring that the constitutional court decision in March this year is implemented to the dot.— Jeff Radebe, Minister in the Presidency
I am very confident that it going to work out because already I have got two million South Africans who are beneficiaries and already use commercial banks so it is a question of migrating them from this CPS to the commercial banks as well as the post office.— Jeff Radebe, Minister in the Presidency
Click on the link below to hear more from the minister...