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IOL News
6 days ago
- Business
- IOL News
Straining to support: South Africa's social grants are vital but can the state keep up?
Economic challenges and the future of social grants in South Africa Image: Tracy Adams Social relief of distress, or social grants, is a key part of South Africa's welfare system; however, recent data indicates that its role is increasingly strained, raising concerns about sustainability, economic growth, and social cohesion. According to the latest General Household Survey released by Statistics South Africa (Stats SA), an unprecedented 40.1% of the population - approximately 25.4 million individuals-now rely on social grants. This marks a significant increase from previous years and reflects a steady rise in dependence, particularly amid persistent unemployment and economic challenges. Risenga Maluleke, Statistician-General of South Africa, noted that the country's official unemployment rate hit 32.9% in the first quarter of 2025. Such figures highlight the stark depth of economic hardship many face, with social grants serving as a vital safety net without sufficient employment opportunities. Paul Maritz, Director at Free SA, a foundation advocating for rights, equality, and systemic reform, highlighted the gravity of this dependence. 'The growing reliance on social grants - now affecting over 25 million people — highlights deep socio-economic challenges and the urgent need for structural change,' he explained. 'Our proposed Power to the People Amendment aims to address these issues by reducing waste, devolving policing, and breaking monopolies that hinder economic opportunity.' Maritz warned that 'sustained dependence on grants without parallel investment in job creation risks entrenching a welfare economy that stifles individual potential and hampers long-term growth.' He warned that if current trends persist, South Africa's economy could face stagnation, shrinking tax bases, and rising inequality-all threatening social stability. The fiscal burden of social grants is significant. In 2011, the South African government allocated around 3.5% of GDP to social assistance, which has grown over the years. The Centre for Global Development estimated that expenditure on social grants, particularly the Child Support Grant (CSG), reached nearly ZAR31 billion (approximately US$4.2 billion) in 2010-11. Instead, they argued that they serve as a necessary-but insufficient-measure to support those unable to provide for themselves. "While grants have helped improve food security, children's well-being, and school attendance,' Maritz warned that they are not a long-term solution to poverty. 'Overdependence can distort labor markets. When social assistance becomes a substitute for employment, it can disincentivize active job-seeking and skills development. 'Countries with more developed economies often implement prerequisites or conditions tied to grants, encouraging recipients to pursue upskilling or community participation.' He added that the current approach risks creating a stagnating workforce and reducing overall productivity in South Africa, thereby hindering economic growth and perpetuating inequality. 'Ironically, the system designed to reduce inequality may inadvertently reinforce it if not paired with empowerment strategies. 'Without access to meaningful employment, quality education, and secure communities, social mobility remains elusive for many beneficiaries.' Furthermore, dependence on grants without addressing the root causes-unemployment, corruption, and inefficient public services-could erode trust in institutions. Maritz warned that 'a society where millions feel trapped and unheard is inherently unstable,' stressing the need for comprehensive reforms.
IOL News
6 days ago
- Business
- IOL News
Welfare State? Concerns grow over South Africa's unsustainable rising dependence on social grants
Economic challenges and the future of social grants in South Africa Image: Tracy Adams Social relief of distress, or social grants, is a key part of South Africa's welfare system; however, recent data indicates that its role is increasingly strained, raising concerns about sustainability, economic growth, and social cohesion. According to the latest General Household Survey released by Statistics South Africa (Stats SA), an unprecedented 40.1% of the population - approximately 25.4 million individuals-now rely on social grants. This marks a significant increase from previous years and reflects a steady rise in dependence, particularly amid persistent unemployment and economic challenges. Risenga Maluleke, Statistician-General of South Africa, noted that the country's official unemployment rate hit 32.9% in the first quarter of 2025. Such figures highlight the stark depth of economic hardship many face, with social grants serving as a vital safety net without sufficient employment opportunities. Paul Maritz, Director at Free SA, a foundation advocating for rights, equality, and systemic reform, highlighted the gravity of this dependence. 'The growing reliance on social grants - now affecting over 25 million people — highlights deep socio-economic challenges and the urgent need for structural change,' he explained. 'Our proposed Power to the People Amendment aims to address these issues by reducing waste, devolving policing, and breaking monopolies that hinder economic opportunity.' Maritz warned that 'sustained dependence on grants without parallel investment in job creation risks entrenching a welfare economy that stifles individual potential and hampers long-term growth.' He warned that if current trends persist, South Africa's economy could face stagnation, shrinking tax bases, and rising inequality-all threatening social stability. 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 ✕ The fiscal burden of social grants is significant. In 2011, the South African government allocated around 3.5% of GDP to social assistance, which has grown over the years. The Centre for Global Development estimated that expenditure on social grants, particularly the Child Support Grant (CSG), reached nearly ZAR31 billion (approximately US$4.2 billion) in 2010-11. Instead, they argued that they serve as a necessary-but insufficient-measure to support those unable to provide for themselves. "While grants have helped improve food security, children's well-being, and school attendance,' Maritz warned that they are not a long-term solution to poverty. 'Overdependence can distort labor markets. When social assistance becomes a substitute for employment, it can disincentivize active job-seeking and skills development. 'Countries with more developed economies often implement prerequisites or conditions tied to grants, encouraging recipients to pursue upskilling or community participation.' He added that the current approach risks creating a stagnating workforce and reducing overall productivity in South Africa, thereby hindering economic growth and perpetuating inequality. 'Ironically, the system designed to reduce inequality may inadvertently reinforce it if not paired with empowerment strategies. 'Without access to meaningful employment, quality education, and secure communities, social mobility remains elusive for many beneficiaries.' Furthermore, dependence on grants without addressing the root causes-unemployment, corruption, and inefficient public services-could erode trust in institutions. Maritz warned that 'a society where millions feel trapped and unheard is inherently unstable,' stressing the need for comprehensive reforms.
eNCA
10-05-2025
- Politics
- eNCA
Call for end to state-owned monopolies
FRANKFURT - Free SA has drafted its proposed Power to the People Constitutional Amendment Bill. It will be presented to Parliament by the end of May. WATCH | Parliament ready for third budget 2025 It calls for a Cabinet to be kept to a maximum of 15 Ministers and 15 Deputies. Policing will be devolved to provinces and will be community based. The group also calls for an end to state-owned monopolies.
eNCA
01-05-2025
- Politics
- eNCA
Many willing workers, not enough jobs
JOHANNESBURG - Workers' Day is meant to honour the dignity of labour and the rights of workers. But the Foundation for Rights of Expression and Equality has one question for government: Where are the jobs? Free SA says that for over 12 million South Africans, there is very little to celebrate on this public holiday. Free SA spokesperson Noluthando Hlophoyi unpacks this further.
IOL News
23-04-2025
- Politics
- IOL News
Growing rejection of PSIRA's draft firearm regulations sparks nationwide outcry
Private security industry is facing a crackdown on the weapons the security industry can have access to. The wave of opposition to the proposed amendments to firearm regulations for the private security industry is gaining momentum, with nearly 30,000 formal objections submitted by the Foundation for Rights of Expression and Equality (Free SA) in a scathing rejection of the draft regulations under the Private Security Industry Regulation Act. 'This is not just about regulatory overreach; it's about people's lives. The draft regulations are disconnected from the realities of crime in our country. They disarm the very people who are protecting our communities while offering no credible alternative,' said Reuben Coetzer, Spokesperson for Free SA. Free SA warns that the proposed regulations, tabled by the Private Security Industry Regulatory Authority (PSIRA) and Police Minister Senzo Mchunu, could have dire implications for public safety, community self-reliance, and the constitutional rights of citizens. The proposed amendments to South Africa's Private Security Industry Regulation Act introduce significant changes to the management of firearms within the private security sector. These draft regulations aim to tighten control over the issuing, possession, and use of firearms and other weapons by security service providers. Key provisions include mandating that security officers may only possess firearms lawfully provided by their employers, prohibiting them from using personally owned firearms while on duty. Additionally, the regulations seek to impose stricter oversight on firearm usage, including requirements for detailed record-keeping and adherence to specified training standards. Free SA has called for the immediate withdrawal of the draft, citing widespread concern from crime-affected communities. In its submission to PSIRA, Free SA revealed it had received 28,395 individual objections through its public participation platform. 'We don't see SAPS in our community. If you take away our security patrols' tools, who will protect us?' read one submission. Another asked: 'Private security came when my wife was attacked. SAPS came three hours later. If these rules pass, who do I call next time?' Among the objections are concerns about legal vagueness, such as undefined terms like 'reasonable quantity of ammunition' and impractical proposals like mandating tracking devices on firearms. Free SA also criticised what it called a 'flawed and legally deficient' public consultation process and warned that the regulations ignore successful safety models, such as the Western Cape's LEAP programme. The foundation's stance echoes industry-wide backlash. Just last week, six leading private security industry bodies—SANSEA, SASA, the National Security Forum, CEO, TAPSOSA, and LASA—announced their formal opposition to the proposed regulations. 'We urge the government to work collaboratively with the sector to find solutions that support both accountability and operational viability,' said Steve Conradie, National Chairperson of the National Security Forum. 'If these regulations are promulgated, it will result in massive job losses and will put the safety of the public at risk.' The coalition has engaged firearm law expert Martin Hood of MJ Hood and Associates to spearhead their legal response. THE MERCURY
