South Africa's Economy
Social Grants
How South Africa pays social grants to around a third or more of its population, including child support and old-age grants, and debates about a basic income.
South Africa has a large social grants system.
Main grants
- Child Support Grant: for poor children.
- Old Age Grant: for older people.
- Disability Grant.
- Social Relief of Distress (SRD) grant: introduced in 2020 during COVID-19 for unemployed adults.
Scale
- Around 28 million people receive grants, close to half the population, including the SRD grant.
- Grants are a major source of income for poor households.
Effects
- Reduced extreme poverty.
- Better child nutrition and school attendance.
- Old-age grants often support whole families.
Debates
- Fiscal costs amid low growth.
- Basic income: some push to make the SRD grant a permanent basic income.
- Concerns about dependency versus evidence that grants help job searching.
Delivery
SASSA (South African Social Security Agency) pays grants, increasingly through bank accounts.
The grandmother's pension
A grandmother's old-age grant feeds her grandchildren and pays for their school transport, as their parents are unemployed.
Thinking social grants are small in South Africa
Around 28 million people receive grants.
Key takeaways
- South Africa pays child, old-age and disability grants.
- The SRD grant began in 2020.
- Around 28 million people receive grants.
- A permanent basic income is debated.
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