State measures in place to cushion poor amid rising living costs — Ramaphosa
President Cyril Ramaphosa said his government is pro-poor.
Image: GCIS
President Cyril Ramaphosa says his government, the Government of National Unity (GNU), has implemented adequate measures to protect low-income South Africans from the rising cost of necessities.
This comes as the average household food basket has increased by nearly 40% relative to inflation.
Ramaphosa emphasised that the government was fully aware of the financial pressures facing citizens and remains committed to supporting the most vulnerable through targeted relief measures.
He was responding to oral questions in Parliament, Cape Town on Tuesday.
'Government recognises the high cost of living facing South Africans.
'Tackling poverty and the cost of living is one of the three strategic priorities of the GNU and forms a central pillar of the Medium TermDevelopment Plan.
'South Africa's macroeconomic policy framework has been a key lever for shielding the poor from the high cost of living,' he said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
Ramaphosa mentioned that the framework included an inflation target, which has helped to keep prices low and stable and has been important in reducing average prices.
'Food price inflation has fallen quite significantly from 12.7 percent at the end of 2022 to 2.2 percent in March 2025.
'Headline inflation, which is a measure of the general cost of living, has also declined, averaging 4.4 percent in 2024 and inflation has even moderated further to 2.7 percent in March 2025,' he said.
'Food staples, such as maize meal, brown bread, rice, samp, milk, eggs, and other basic foodstuffs remain exempt from VAT, to help to cushion lower-income households in our country.
'Our fiscal policy has been redistributive, prioritising poor and low-income households. The government spends around 60 percent of its revenue on the social wage, which includes spending on social grants on education and health.'
Last week, Finance Minister Enoch Godongwana, presented his 2025 national budget, without Value-Added-Tax (VAT) but social grants were increased at a rate higher than inflation.
The provision of free basic services, such as water and electricity, for indigent households is an essential measure in reducing the high cost of living.
'This package of free municipal services continues to be a key tool for reducing poverty and inequality, and raising living standards and facilitating access to greater economic opportunities for many of our people.
'It is essential that municipalities ensure that this support reaches all the households that need it,' Ramaphosa said.
kamogelo.moichela@iol.co.za
IOL Politics
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
4 hours ago
- The Citizen
Top 10 stories of the day: Ramaphosa defends BEE Woman awarded R580k after arrest
Here's your daily news update for 7 June 2025. An easy-to-read selection of our top stories. In today's news update, President Cyril Ramaphosa has defended Black Economic Empowerment (BEE), while NDPP Shamila Batohi faces growing pressure to clarify her claims of political interference in the NPA. Additionally, a woman wrongfully detained for 10 days has been awarded nearly R600 000 in damages by the SCA. Stay up to date with The Citizen – More News, Your Way. News today: 7 June 2025 'Is it greed or jealousy?': Ramaphosa fires back at critics of BEE, Transformation Fund President Cyril Ramaphosa at the Oval Office of the White House in Washington, DC on 16 September 2022. Picture: AFP / Saul Loeb President Cyril Ramaphosa has come out swinging against critics of Black Economic Empowerment (BEE), questioning whether their opposition is rooted in 'greed' or 'jealousy'. Ramaphosa was speaking during his keynote address at the gala dinner of the Black Business Council's annual summit held at the Radisson Hotel and Convention Centre in Kempton Park, Ekurhuleni. Continue reading here Batohi could appear in parliament to explain allegations of corruption inside the NPA National Director of Public Prosecutions (NDPP) Shamila Batohi. Picture: Gallo Images / Phill Magakoe The Economic Freedom Fighters (EFF) wants the National Director of Public Prosecutions (NDPP) Shamila Batohi to appear before parliament next week to give more details about allegations of rogue elements inside the National Prosecuting Authority (NPA). Continue reading here Wrongfully arrested woman wins nearly R600k after ordeal that led her to consider suicide Picture: iStock A woman who endured a harrowing 10-day detention after a wrongful arrest has been awarded nearly R600 000 in damages by the Supreme Court of Appeal (SCA). Cynthia Nobuhle Khedama initially sued the Minister of Police for R1 million over her arrest and detention, Continue reading here Rebuild VBS, urges ANC treasurer-general VBS Mutual Bank customers at long queues outside the bank in Thohoyandou, Limpopo. Picture: Gallo Images / Antonio Muchave ANC treasurer-general Gwen Ramokgopa has pleaded with the Reserve Bank and National Treasury to assist the Vhembe community in Limpopo to rebuild the collapsed Venda Business Society (VBS) Mutual Bank. More than 53 people have been charged for theft, corruption, fraud, money laundering, contraventions of the Prevention of Organised Crime Act and racketeering for stealing and looting more than R2 billion of VBS money since 2018. Continue reading here R42m water storage facility installed, but taps run dry in Xanthia village A resident of Majakaneng Village fills up containers with water on 3 February 2015. Picture: Gallo Images / Sowetan / Veli Nhlapo A R42 million water reservoir tank built in Xanthia Village, Bushbuckridge, Mpumalanga, 10 years ago has never been used since its completion. This is according to the residents, who confirmed that the construction of the reservoir did not assist in bringing a sustainable water supply to the area. Continue reading here Here are five more stories of the day: Yesterday's News recap READ HERE: Top 10 stories of the day: K-word teacher loses labour case | Amerikaners' future uncertain | NPA sabotage claims
eNCA
5 hours ago
- eNCA
14 South Africans held in Zimbabwean jails
HARARE - At least 14 South Africans are being held in Zimbabwean jails. They are among over 70 foreign nationals behind bars in the country, the majority for crossing the border illegally. The Zimbabwe Human Rights Commission says these people should be deported and not held. During a visit to the Harare Remand and Chikurubi Maximum Security prisons recently, the commission exposed inhumane conditions. It's calling for an urgent intervention. The commission inspected the Harare Remand and Chikurubi Maximum Security prisons. It found inhumane conditions, lack of access to education, healthcare and delays in legal proceedings. But, the commission also found dozens of undocumented migrants. The ZHRC says these people should be deported and not held in these jails. Human rights lawyers are calling for the swift implementation of all the commission's findings.
IOL News
8 hours ago
- IOL News
Financial tips for UK expats moving back to South Africa
Explore the financial implications for UK expats returning to South Africa, including tax residency, pension arrangements, and property considerations. Learn how to optimise your finances for a smooth transition back home. Image: Supplied. South Africa faces many challenges, but a clear trend is emerging of expats returning home. Stats SA's Migration Profile Report for South Africa, released last year, shows that since 2000, the number of South Africans in the UK has grown from 136,720 to 247,336. But in a move that some have dubbed 'reverse emigration', many are heading back. The top reasons for coming back range from missing the South African lifestyle and family and friends, to the bad weather and high cost of living in the UK. The UK is significantly more expensive than South Africa, especially when it comes to housing, eating out, and labour costs. For the same income, South Africa offers families better homes, an affordable lifestyle, and access to good schools. Here are the financial implications for expats returning to South Africa. Ensure your finances are in order before you move back A move between countries shifts tax residency, so you will need to determine your tax residency status in both the UK and South Africa, as this will impact how your income and worldwide assets are taxed. Be aware that South Africa taxes residents on their worldwide income while non-residents are taxed only on South African-sourced income. It is important to familiarise yourself with the UK-South Africa DTA to avoid being taxed twice on the same income. It is a good idea to monitor the GBP/ZAR exchange rate to plan the timing of your transfers. The Rand can be volatile, so it may be a good idea to work out your income and capital needs in South Africa and transfer only the amount that you are planning to spend there. Remember that retaining funds offshore can hedge against a weakening currency. Make sure you review your UK pension arrangements before you leave. Several UK pension providers will not accept SA residents on their platform or, when you become a non-resident in the UK, will not allow you to make further changes to your existing UK pension. This could have a material impact on your retirement planning. It's also a good idea to make sure you understand the tax treatment of your UK investments in South Africa, including potential liabilities for Capital Gains Tax or foreign dividends. A question that comes up often is 'Should I retain my ISAs?' Unfortunately, ISAs are not tax-free in South Africa, which has its own version of an ISA called a Tax-Free Savings Account. When moving to a new country, it's best to review the product wrappers you are currently using, as well as what options you have available in South Africa. Many clients benefit from restructuring their investments and tax optimising strategies when it comes to cross-border financial planning. If you have a UK property, you will need to decide whether to sell, rent out, or retain your UK property. Be aware of tax implications, such as Capital Gains Tax and rental income tax in both countries. Buying property in South Africa is fairly straightforward, but make sure that you do your due diligence before any large purchase. Getting set up with a bank account can be difficult without being physically present and able to provide proof of residence in South Africa. Once you have the required supporting documents, the process of opening an account is relatively easy. Many South African bank providers offer offshore accounts. The money required to be held in these accounts is much higher than a local bank account, but it can provide additional flexibility for holding non-Rand assets. * Adshade is the wealth advisor at Sable International. PERSONAL FINANCE
