Tackling the triple challenge of poverty, inequality, and unemployment remains an important task for the South African government. One mechanism proposed to combat this triple challenge is the introduction of a Basic Income Grant.
The discussion surrounding society’s obligation to support unemployed people living in South Africa will be positively impacted, according to the Department of Social Development (DSD), according to a recent report on Basic Income Support.
Prior to the introduction of the Social Relief of Distress (SRD) grant in 2020, able-bodied unemployed individuals between the ages of 18 and 59 years old did not qualify for social support from the South African Social Security Agency (Sassa).
The SRD grant is a temporary intervention from the government and its implementation is set to conclude in March 2023. The grant’s ending implementation will mean that around seven million people will be left without any financial support from the government.
A new report commissioned by the DSD states that the government would not have to sacrifice economic growth if they take the decision to make the SRD grant permanent.
The Expert Panel Report on Basic Income Support (BIS) trailed different models to consider the economic, fiscal, and social impacts of making the SRD grant permanent.
Panel Chair Alex van den Heever says the modeling suggested that the SRD grant can be introduced in a manner that is fiscally and economically sustainable. They added that social grants and wealth redistribution could encourage financial growth.
Speaking at the handing over of the report, Social Development Minister Lindiwe Zulu said the report will help the government design policies and programs responding to the needs of many South Africans.
The minister also believes the impact of basic income support would have a positive impact on the communities that beneficiaries live in.
“Basic Income Support will enhance productivity owing to community capabilities. It will stimulate local economies and deter households and communities from disposing of the primary assets that are a buffer between life and death,” said Zulu.
The minister also believes that the report will positively shape the discourse of society’s responsibility to provide social assistance for unemployed individuals living in the country.