South Africa’s National Treasury expects about R13 billion in savings over the next three years from reducing fraud in social grants, savings it attributes to enhanced biometric enrolment and beneficiary verification. The figure is part of the Medium-Term Budget Policy Statement that Finance Minister Enoch Godongwana delivered on Oct. 21, which also set aside R150 million for the app that is set to carry the country’s digital ID.
Godongwana said the government had identified a further R38.1 billion in savings over the 2027 medium-term expenditure framework period, including R13 billion from reducing fraud in social grants. Treasury’s documents put the grant savings at R13.1 billion for 2027/28 through 2029/30 and say the same verification process will next be applied to National Student Financial Aid Scheme bursaries and housing subsidies.
Treasury expects stronger verification to reduce the number of social grant beneficiaries from 17.8 million in 2026/27 to 17.1 million by 2029/30, saving R6.2 billion. That money is to be redirected to preventing gender-based violence and femicide and to health programs against child malnutrition and stunting. The grants system currently pays old-age, disability, child support and other grants to 18.1 million beneficiaries, according to the minister.
The grants are administered by the South African Social Security Agency, which this month described Beneficiary Biometric Enrolment as a way to strengthen identity verification and the security of grant transactions, alongside proof-of-life checks.
In the adjustments budget, Godongwana allocated R150 million to “enhancing the technical capabilities of the digital services unit to lead the development of the MyMzansi app, which will allow citizens to access government services through a single digital platform.” The unit is part of Operation Vulindlela, the reform program run by the Presidency and National Treasury.
MyMzansi is also set to carry South Africa’s digital ID. Home Affairs Minister Leon Schreiber demonstrated a working prototype in the app on Oct. 1, verifying his identity with a thumbprint and generating a QR code that shared only the details he chose.
Home Affairs’ performance plan targets completion of the hosting infrastructure by March 31, 2027, with credentials to be issued to citizens through a mobile wallet in the 2027/28 financial year. Use of the digital ID will be voluntary, and the physical smart ID card will remain available.
Sources: South African Government, GroundUp, ITWeb, TechCentral, SAnews
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By the ID Tech Editorial Team
