Work Is Underway To Introduce The Basic Income Grant

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South Africa is currently faced with a triple threat of hunger, poverty and unemployment. The government has announced that work is being done to make sure that there is financial support to help vulnerable individuals.


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Although South Africa has made progress in reducing poverty since 1994, the trajectory of poverty reduction was reversed between 2011 and 2015, suggested a report from the World Bank in 2020.

It is during this time that the majority of the population was further plunged into poverty, erasing whatever progress that had been made so far.

In the past three years, activists and economists have been vocal about a universal basic income grant being introduced to help cater for individuals that continue to live in poverty.

In this year's State of the Nation Address (SONA), President Cyril Ramaphosa has announced that work is underway to develop a mechanism for a targeted Basic Income Support (BIS) for the most vulnerable.

In a statement, Ramaphosa further explains:

Owing to the rising cost of living, and with the view to cushion the most vulnerable among South Africans from the effects of known and novel risks alike, the Social Development portfolio is in the process of devising a Basic Income Support.

Department of Social Development Minister Lindiwe Zulu said if South Africa had a society and economy that is structured to serve and benefit an absolute few, there wouldn’t be reasons to necessitate this intervention.

In 2022, Finance Minister Enoch Godongwana, informed the country that the government will be investing more than R3 trillion on the social wage over a period of three years.

“While we are entering the second year of the three, we should particularly be mindful that this allocation is targeted at leaving no one behind by supporting vulnerable populations as well as low-income households,” said Zulu.

The intention behind the government’s efforts is to make sure that the country’s cost of living is reduced and less felt by deserving individuals.

 

Suggested Article:

Sassa beneficiaries demand a universal income grant

South Africa is among many countries around the globe that are faced with high levels of both unemployment and poverty.  This was further exacerbated by the effects of the Covid-19 pandemic, and it is for this reason that there has an increase in calls for permanent solution for individuals who are in needed of government assistance.

 

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