Explore the evidence.
Understand the reach.

The Social Relief of Distress (SRD) grant, introduced as an emergency measure during the COVID-19 pandemic, has become a critical support mechanism for millions of South Africans. Although initially implemented to address the immediate economic fallout of the pandemic, the grant has persisted beyond the crisis, evolving into an essential component of the country’s social protection landscape. Its discontinuation at this stage would have devastating consequences, particularly for the large population of unemployed youth in townships who rely on the grant for basic survival, including securing a daily meal. Unlike other targeted grants such as those supporting children, the elderly, or students, the SRD grant is uniquely positioned to address the needs of working-age individuals excluded from formal employment and other social programs. In a context where South Africa’s apartheid legacy continues to shape patterns of poverty, marginalisation, and inequality, the SRD grant serves not only as a poverty alleviation tool but also as a vehicle for redress and inclusion. This paper advocates for institutionalising the SRD grant by transforming it into a permanent Basic Relief Income (BRI) program, designed as a near-universal income support for working-age adults with low or no income. The BRI is envisioned as a sustainable and inclusive safety net that recognises the socio-historical context of dispossession and responds to the structural exclusion faced by millions. By framing income support as both a developmental and restorative intervention, the proposed BRI model can play a vital role in promoting economic participation, social cohesion, and long-term national stability.

Poverty persists in many countries especially those in the sub-Saharan African region where the levels have been getting worse. The extent of poverty has been worsened in the last 5 years by the many exogenous factors that have gone beyond the control of individual countries. From Covid-19 in late 2019 to early 2020 going all the way to 2021, to Ukraine Russia war that disrupted global supply chains, to the war between Israel and Hamas that have left countries divided. Several countries have also witnessed natural disasters like cyclones and heavy rains and tidal waves that have caused irreparable damage to livelihoods.  In the wake of these external factors over and above country specific a number of governments introduced social grants as safety nets to help households in danger of abject poverty. This study assesses the dynamics of poverty within social grant-dependent households in South Africa, exploring the extent to which social grants mitigate poverty across varying levels of deprivation. Using 2023 data from a representative national survey, the analysis applies conditional probability models to examine the influence of social grants on household poverty risk, considering three distinct poverty thresholds: the Food Poverty Line, the Lower Bound Poverty Line, and the Upper Bound Poverty Line. Findings reveal that households receiving grants experience a statistically significant reduction in poverty risk, particularly at the lower poverty levels, underscoring the effectiveness of grants as a targeted poverty alleviation tool. However, unemployment, single-headed households, and racial disparities are found to compound poverty risk, pointing to the need for an integrated approach that combines social grants with employment and empowerment programs. Female-headed households are especially vulnerable, showing a higher likelihood of poverty across all poverty lines, likely due to factors such as lower income and greater caregiving responsibilities. The study concludes that while social grants play a critical role in reducing poverty risk, additional measures are essential for addressing the underlying socioeconomic disparities that affect poverty dynamics. Recommendations include increasing grant values to match inflation, expanding job creation efforts, and implementing targeted support programs for the most vulnerable demographics, particularly single-parent and female-headed households. These measures would enhance the efficacy of social grants and support long-term poverty reduction efforts in South Africa.  

The Social Relief of Distress (SRD) grant, introduced as an emergency measure during the COVID-19 pandemic, has become a critical support mechanism for millions of South Africans. Although initially implemented to address the immediate economic fallout of the pandemic, the grant has persisted beyond the crisis, evolving into an essential component of the country’s social protection landscape. Its discontinuation at this stage would have devastating consequences, particularly for the large population of unemployed youth in townships who rely on the grant for basic survival, including securing a daily meal. Unlike other targeted grants such as those supporting children, the elderly, or students, the SRD grant is uniquely positioned to address the needs of working-age individuals excluded from formal employment and other social programs. In a context where South Africa’s apartheid legacy continues to shape patterns of poverty, marginalisation, and inequality, the SRD grant serves not only as a poverty alleviation tool but also as a vehicle for redress and inclusion. This paper advocates for institutionalising the SRD grant by transforming it into a permanent Basic Relief Income (BRI) program, designed as a near-universal income support for working-age adults with low or no income. The BRI is envisioned as a sustainable and inclusive safety net that recognises the socio-historical context of dispossession and responds to the structural exclusion faced by millions. By framing income support as both a developmental and restorative intervention, the proposed BRI model can play a vital role in promoting economic participation, social cohesion, and long-term national stability.

Poverty persists in many countries especially those in the sub-Saharan African region where the levels have been getting worse. The extent of poverty has been worsened in the last 5 years by the many exogenous factors that have gone beyond the control of individual countries. From Covid-19 in late 2019 to early 2020 going all the way to 2021, to Ukraine Russia war that disrupted global supply chains, to the war between Israel and Hamas that have left countries divided. Several countries have also witnessed natural disasters like cyclones and heavy rains and tidal waves that have caused irreparable damage to livelihoods.  In the wake of these external factors over and above country specific a number of governments introduced social grants as safety nets to help households in danger of abject poverty. This study assesses the dynamics of poverty within social grant-dependent households in South Africa, exploring the extent to which social grants mitigate poverty across varying levels of deprivation. Using 2023 data from a representative national survey, the analysis applies conditional probability models to examine the influence of social grants on household poverty risk, considering three distinct poverty thresholds: the Food Poverty Line, the Lower Bound Poverty Line, and the Upper Bound Poverty Line. Findings reveal that households receiving grants experience a statistically significant reduction in poverty risk, particularly at the lower poverty levels, underscoring the effectiveness of grants as a targeted poverty alleviation tool. However, unemployment, single-headed households, and racial disparities are found to compound poverty risk, pointing to the need for an integrated approach that combines social grants with employment and empowerment programs. Female-headed households are especially vulnerable, showing a higher likelihood of poverty across all poverty lines, likely due to factors such as lower income and greater caregiving responsibilities. The study concludes that while social grants play a critical role in reducing poverty risk, additional measures are essential for addressing the underlying socioeconomic disparities that affect poverty dynamics. Recommendations include increasing grant values to match inflation, expanding job creation efforts, and implementing targeted support programs for the most vulnerable demographics, particularly single-parent and female-headed households. These measures would enhance the efficacy of social grants and support long-term poverty reduction efforts in South Africa.