Human rights organisation, COSATU and economists debate future of social grants
South Africa's economy is not creating enough jobs, so what happens to the millions of people who currently rely on social grants? This was the question raised by activists, economists and labour leaders at a panel discussion hosted by the Black Sash in Cape Town on Wednesday.
The event was part of the organisation's 70th anniversary celebrations, and looked at the impact of removing social assistance in a country with high youth unemployment, food insecurity and growing inequality.
The General Household Survey released by Statistics South Africa (StatsSA) on Tuesday, shows that the proportion of people receiving social grants grew from about 13% in 2003 to 31% in 2019 and surged to 40% in 2024 'due to the introduction of the special Covid-19 Social Relief of Distress (SRD) grant'.
Rachel Bukasa, Executive Director of Black Sash, said social grants are not a luxury, but a necessary response to high unemployment and poverty.
'Grants are an important stop-gap to the poverty and unemployment that exists. One of the biggest misconceptions when we talk about grants is that we don't want people to work. When we call for grants, it's in the absence of the jobs that the government has promised year after year.'
She said while job creation remains the goal, the economy doesn't offer enough work for those who need it. Bukasa dismissed claims that grants breed dependency, saying they are a vital safety net while the government works to improve the job market.
COSATU's Tony Ehrenreich agreed with Bukasa. He said the alternative to social support from the state is people falling into hunger and desperation.
'Grants are only a requirement when the market has failed. If the market is perfect there will be no need for grants, but the market is not perfect so we need to take care of people in the interim … It's not a question of jobs or grants. It's both,' Ehrenreich said.
StatsSA reported that the official unemployment rate stood at about 33% in the first quarter of 2025. The expanded unemployment rate, which includes discouraged job seekers, is 43%. Ehrenreich said these statistics show the current economic direction is not working. 'We can say the system has failed if we look at the unemployment rate and deepening inequality … Must poor people pay for the failure of the rich and the public policymakers who drive around in their fancy cars? That can't be the response.'
But political economist Phumlani Majozi said the current grant system is putting too much pressure on the country's fiscus. 'South Africans agree that the best way to move forward as a society is for people to have jobs … In our budget, the social grant expenditure is massive. 65% of our expenditure goes towards social grants, subsidised housing etc … Fiscally, it's not something that is manageable.'
He criticised the lack of government vision. 'Where is the plan from the president and his cabinet to say by a certain year these are the targets … It doesn't seem like Enoch Godongwana has a plan.'
Majozi said the system discouraged reform. 'There will be no incentive for government to change and pursue policies to encourage economic growth if our first argument is that we need social grants.'
To which Bukasa responded that social security is a right, not a favour. 'Social assistance is protected by the Constitution. So we need to do away with the notion that it's a favour the government is doing … The fact that we have high needs for social protection right now is a reflection of governments inability to deliver on job creation.'
This article first appeared on GroundUp. Read the original article here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
an hour ago
- The Citizen
Gauteng NPOs face collapse as social development cuts funding
Despite the increasing need for child protection services, the department has returned significant sums to the provincial treasury. Non-profit organisations (NPOs) providing vital services to vulnerable children across Gauteng are struggling to stay afloat due to funding cuts and delays by the Gauteng Department of Social Development (GDSD). According to the Democratic Alliance's Gauteng MEC for Social Development, Refiloe Nt'sekhe, children in need are bearing the brunt of these failures. Sharp decline in support for NPOs Nt'sekhe said the department has consistently reduced the number of NPOs it funds. 'In the 2021/22 financial year, the department was funding 2 856 NPOs, 2022/23 – 1 837, 2023/24 – 1 464, and about 1 328 in the 2024/25 financial year,' she stated. One of the affected organisations is a foundation in Daveyton, Ekurhuleni, which caters for children and operates feeding schemes. With funding either delayed or completely withdrawn, operations have been severely impacted. Despite the increasing need for child protection services, the department has returned significant sums to the provincial treasury. 'In 2023/24, GDSD returned R554 million, and the first quarter of the 2024/25 financial year already indicates R102 million returned,' Nt'sekhe said. ALSO READ: South Africans trust business and NGOs, but have beef with the rich 'No sympathy for social needs' As South Africa observes Child Protection Week, Nt'sekhe has called for greater accountability from MEC Faith Mazibuko. 'Delays in the signing of Service Level Agreements and disbursing funds demonstrate her department's incompetence and a lack of sympathy towards the province's social needs and the well-being of its most vulnerable children,' she said. She added that Mazibuko could no longer blame her predecessor and urged her to effect urgent changes within the department. 'This Child Protection Week, we must demand transparency and clear timelines on the disbursement of funds to NPOs.' ALSO READ: My Vote Counts asks for extension and transparency in IEC appointments Constitutional rights under threat Citing Section 27 of the Constitution, Nt'sekhe said the state has a legal obligation to ensure that citizens, especially children, have access to food, healthcare, and social security. 'Without adequate funding for NPOs, the chances of abandoned children surviving and thriving diminish significantly,' she warned. The GDSD had not yet responded to The Citizen at the time of publishing. NOW READ: MES faces explosive claims of BEE violations and financial misconduct
IOL News
5 hours ago
- IOL News
The merger of KZN's Gold Circle and Cape Racing has birthed Race Coast.
The merger of Gold Circle's operations in KwaZulu-Natal and Cape Racing from the Western Cape has given rise to an exciting new entity known as Race Coast. Founded under the auspices of the uMhlanga-based South African sports betting company Hollywoodbets, this collaboration has been met with resounding support from the nation's leading horse trainers, who believe it represents a bright future for the sport. Prominent South African champion trainer Justin Snaith, along with the globally-renowned horse racing ambassador Mike de Kock and accomplished trainer Dean Kannemeyer, have publicly endorsed Race Coast. Their collective enthusiasm highlights a refreshing wave of optimism within the racing community. The Cape Town-based Snaith emphasised that this initiative promises not only to elevate the standards of racing but also to foster a deeper connection between the sport and its fans. He reflected on the initial success in his province of a similar initiative, RaceCape, initiated by Cape Racing and Hollywoodbets. Snaith is celebrating a half-century of KZN winter season assaults for the famous family operation. His father Chris, still a key member of their team, first raided with a string from the Cape in 1975. 'That structure has proven a tremendous success! It has not only boosted ownership and field sizes in the Western Cape but has also provided trainers with additional funding to enhance their operations. "Now we mark the historic beginnings of Race Coast, which is another generous initiative by Hollywoodbets, aimed at promoting ownership in KwaZulu-Natal and the Cape while boosting the horse population,' said at the launch of Race Coast. Snaith reminded us of the past, recalling that many feared that horse racing in South Africa might not survive after the COVID-19 pandemic. 'However, the dedicated efforts of a few individuals have not only saved the sport but have also paved the way for an exciting future. It is a future that we can shape and reinvent, making it better for all stakeholders involved. "Race Coast marks the beginning of something special for the province and the future of horse racing in South Africa. On behalf of all our owners, staff, and horses, we want to express our sincere gratitude,' he concluded. Mike de Kock, hailed as one of the great trainers of his generation, echoed this sentiment. He expressed confidence that Race Coast would invigorate South African racing and attract a new generation of enthusiasts, emphasising the intrinsic value of promoting racing as both an entertainment platform and a cultural cornerstone. De Kock, who recently joined forces with his son Mathew in a training partnership, said: 'De Kock Racing has been around for a long time, but as a new training partnership, Mathew and I are excited to be involved with the innovators behind Race Coast. "We have already seen the evidence of their vision and commitment, and we have positioned ourselves to grow with them. We look forward to what the future holds.' Three-time Hollywoodbets Durban July winning trainer Kannemeyer said a refreshing wave of enthusiasm and hope have been felt tangibly in the horse racing fraternity. 'The improvement and upliftment have been in bricks and mortar, communication, and incentives and stakes across the spectrum in the Cape, and looking at the rejuvenated Hollywoodbets Greyville landscape. It is a revelation and a passion-driven work-in-progress, in simple terms," he said. "The Hollywoodbets Team have made a difference in a short time, and one gets a very warm feeling that the sport is in good hands. We are all united under the flag of future prosperity, and, on behalf of our owners and the DKR team, I extend sincere onward and upward best wishes to Race Coast.'
IOL News
5 hours ago
- IOL News
Trump's pastor Mark Burns speaks out against Malema and EFF's 'Kill the Boer' chant
Described as US President Donald Trump's top pastor, Mark Burns, is visiting southern Africa and said he is convinced that there is no genocide against white Afrikaner farmers. Image: Timothy Bernard / Independent Newspapers US based Pastor Mark Burns, a staunch supporter of President Donald Trump believes the EFF and its leader Julius Malema should not be taken seriously and are attention-seekers for chanting the 'divisive' 'Kill the Boer, kill the farmer' chant. The African American televangelist, described by Time magazine as Trump's top pastor, was in South Africa on a fact-finding mission following widespread and repeatedly disputed claims of genocide against white Afrikaner farmers. In an interview in Johannesburg this week, Burns suggested that the EFF is losing steam and is slowly fizzling out. 'To my understanding he (Malema) is a minor character and he is slowly fizzling out. I don't want to keep bringing his name up to give him a platform but the reality of it is, that most South Africans don't take him seriously at all, whether you're black or white,' 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 Next Stay Close ✕ 'I don't want to give oxygen to his name to be honest with you. He doesn't have the steam he may once have had and when those videos (were taken) of him singing that song 'Kill the Boer' there were massive crowds but he doesn't have that type of steam anymore'. He dismissed Malema as 'just a character who is screaming, trying to garner attention for himself'. 'That song is a divisive song and I am saying that as a black man, who is very proud that the apartheid government is no longer here, as a man of faith, anything that will cause my brother to stumble should not happen,' Burns explained. He said he understood the historical significance of the song. 'Being a black man, speaking from a black perspective, coming from a nation that once had slaves and up until the 1960s the modern day civil rights movement, many of us didn't even have the right to vote. So it's still not too long ago. "I understand the struggle, I understand the significance of Negro spirituals that were sung during slavery time periods as people were picking cotton, working the fields and it was a way of communicating messages between each other,' added Burns. He explained that some of the songs were designed around killing or about fleeing but they were special. 'They had a significant part then but they don't play a role in society today. You place them in a history book, you may teach people about it but you don't actively bring it to modern day society when apartheid doesn't exist in South Africa,' Burns maintained. Trump played a video of Malema chanting "Kill the Boer, kill the farmer" a recent Oval Office meeting with President Cyril Ramaphosa, with the US President asking Ramaphosa why the EFF leader had not yet been arrested. Last weekend, Malema said he would not be silenced and intimidated by Trump and added that South African courts have ruled there is nothing wrong with the chant, which was not his as he had not composed it. Malema added that Struggle heroes composed the chant and he is defending the legacy of the chant as part of the Struggle heritage. Burns, the founder and chief executive of the NOW television network also expressed his opposition to the country's broad-based black economic empowerment (B-BBEE) policies. 'Yes, it (B-BBEE) is designed to help people of colour to gain access to equal opportunities for economic empowerment while at the same time it should not alienate other people who also want to come to the forefront regardless of the colour of their skin,' said Burns. He said he believed B-BBEE is prohibitive to investment and is causing people to revisit investing in South Africa. 'It blocks other people from around the world, especially the US if they feel coming to South Africa will prevent other people prospering simply for the colour of their skin,' Burns insisted. He proposed revisiting B-BBEE while accepting that 'it is desirable to those who traditionally for 300 years did not have access to the opportunities that now exist'.
