The Social Policy Initiative (SPI) welcomes the press statement released yesterday by the ANC affirming the longstanding support by the ANC of the principle of Universal Basic Income support. We call on all political parties to come out in these last days before the elections to pledge support for the introduction of a decent Universal Basic Income Grant immediately after the elections, whether they are returned as governing parties or members of the opposition.
The key principles that the ANC affirmed in its statement include firstly increasing the number of people who can get the current Social Relief of Distress Grant (the “R350”) grant so that everyone has access to some form of income. Secondly, the ANC commits to increasing the amount of the grant first to the extreme (Food) poverty line of R760 per month, and then to the Upper Bound Poverty Line of R1500 per month.
Social security is guaranteed to everybody in the Constitution. These long overdue steps of expanding access to decent basic income will enable all to benefit from the dividend of democracy when introduced.
Some political parties have promised to introduce an adult grant with certain conditions. One party says they will introduce a grant to people if they are looking for a grant and another party promises a grant to adult graduates only.
With 12 million unemployed people in South Africa, government and the private sector must open up millions of decent jobs before any government can link a job to getting basic income. Other parties have said that they will offer food vouchers to the poor. Food vouchers prevent people from using the basic income to start small businesses.
The majority of potential voters in South Africa experience poverty on a daily basis.
The Social Policy Initiative released a report in February 2024 that shows how a universal basic income that goes to everybody of R1 500 per month will be a highly successful economic stimulus. A decent UBI could bring GDP growth of up to 5.6% per annum and could create 2.7 million jobs. A universal grant is a much better, cheaper way of targeting those in need.
The SPI research report, The Economics of Implementing Universal Basic Income in South Africa, demonstrates that this universal basic income would be about 96% self -financing due to the impact of the economic stimulus.
Because of the needs of people for basic income and jobs, and the need for the economy to grow and thrive, we believe that all political parties that seek to advance the national interest should commit to a universal Basic Income of R1500 per month.
SPI is feminist social security think tank based in Johannesburg. SPI research can be found on www.spi.net.za.
SPI is also a member of the civil society UBI Coalition.
For more information, contact:
Mathapelo Nyembe, Communications Lead
socialmedia@spi.net.za | +27 78 838 7335
