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After months of deliberations, South Africa Social Security Agency (Sassa) and South African Post Office (Sapo) have finally reached an agreement.

National Director at Black Sash Lynette Maart says it acknowledges the effort by Parliament and Sassa to phase out CPS and Net1 from the social grant payment system.

However, Black Sash is concerned that the issue of cash payment, and believe, in particular, that payment in rural areas have not yet been resolved.

There are talks of putting that portion to tender, but Black Sash is concerned that the process won't be concluded by the 31 March deadline.

There are currently about 3 million people who are getting their grants through that method and are not currently catered for, she adds.

Read: Sapo to play a lead role in grants distribution as of April 1

The cash transactions of the agreement are still up in the air ... and we have seen what happened with the tender process of Sapo... took a long time to fall into place.

Lynette Maart, Black Sash National Director

Secondly, Black Sash is concerned about the beneficiaries who will be transferred to the banks. She says although there will be free withdrawals, issues with debit deductions still require clarity as there were problems in the past.

We really hope that Sapo and Sassa will be able to give us a little detail on this...

Lynette Maart, Black Sash National Director

The kind of features of the accounts that the banks will provide is also something that needs to be worked on, particularly because the beneficiaries of social grants cannot be asked to pay for the costs of these bank accounts.

Lynette Maart, Black Sash National Director

To hear more from Black Sash and the agreement between Sassa and Sapo, listen below:

This article first appeared on CapeTalk : Black Sash raises red flags with latest Sassa-Sapo agreement

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