47% of South Africans rely on social grants - study reveals how they use them to generate more income
South Africa has one of the world’s most expansive social grant system: 47% of the population relies on a monthly grant.
- South Africa has one of the world’s most expansive social grant system: 47% of the population relies on a monthly grant.
- Of these, 18 million are permanent beneficiaries and about 10 million receive a temporary Social Relief of Distress Grant.
- The vast majority of the grants are child support grants (R500 or around US$27 a month) paid to a child’s primary caregiver based on a means test.
- Although social grants are spent largely on food, there is growing evidence that they are also used for productive investments in livelihood activities.
- These findings point to the need to design multi-pronged poverty reduction strategies that combine grants with livelihood support services.
Livelihood activities
- In all three studies, regardless of the grant received and its value, interviewees said the grant monies were insufficient to meet their needs.
- Some were income generating activities like buying and selling of goods, providing services such as building, painting, photography, running restaurants or taverns, renting accommodation and traditional healing.
- Others invested in future livelihood strategies such as supporting children with their job search.
- Here's why
Few grant beneficiaries were able to access formal support services from the government.
- A major barrier also relates to the precarious nature of informal work and the lack of protection for vulnerable workers.
Implications for social development policies
- There is a need for greater recognition of informal work and its role in poverty reduction as a national policy objective.
- The development of knowledge and skills and mentoring and coaching are also critical.
- There is room to scale up livelihood support through existing governmental, NGOs, development agencies and CSI programmes.
- However, more research and experimental intervention research is needed to inform the design of livelihood support policies and strategies.