MEDIA STATEMENT, Cape Town – 18 February 2025 – In anticipation of Finance Minister Enoch Godongwana’s 2025 Budget Speech this Wednesday 19 February, Black Sash calls for the urgent need for the government to prioritize the welfare of those living in poverty in South Africa.
President Cyril Ramaphosa’s State of the Nation Address (SONA) was notably vague when addressing the future of social grants and the implementation of the Basic Income Grant (BIG). While he acknowledged the importance of social support for millions of vulnerable South Africans – his vagueness raises concerns, especially given the rising cost of living and the growing demand for financial relief among unemployed and low-income citizens.
As Black Sash, we recognize the importance of social grants in reducing poverty and inequality, and we are disappointed by the lack of a clear roadmap in SONA. The uncertainty surrounding the implementation of the BIG leaves many South Africans anxious about their economic future. The government has repeatedly acknowledged the need for social protection, yet there is still no definitive policy framework outlining how BIG will be funded and distributed. Without a firm commitment, millions who rely on social grants remain in limbo, unsure if the government will prioritize their well-being.
We now look to the upcoming Budget Speech, where we expect Finance Minister to provide the clarity and commitment that was missing from the President’s address. The budget must allocate sufficient resources to fulfill Ramaphosa’s government’s promises regarding social security. We urge the government to move beyond rhetoric and take meaningful steps toward implementing the Basic Income Grant. A concrete plan with clear funding strategies, implementation timelines, and long-term sustainability measures must be presented. The well-being of millions of those living in South Africa depends on decisive action, and we will continue to advocate for policies that prioritize economic justice and dignity for all.
Reflecting on our response to the 2024 budget, we advocate for the following key actions:
1. Increase All Social Grants in Line with Inflation: To ensure that vulnerable individuals can maintain their purchasing power amidst rising costs, it’s essential that all social grants receive adjustments that match the current annual inflation rate.
2. Establish a Permanent Social Relief of Distress (SRD) Grant: We call for the SRD grant to be made permanent and increase the amount to at least the Lower Bound Food Poverty Line, providing consistent support to unemployed individuals aged 18 to 59 who currently lack any form of income assistance.
3. Raise the Child Support Grant to Meet the Food Poverty Line: The Child Support Grant should be increased to at least R760.00, aligning it with the Food Poverty Line to ensure that caregivers can adequately provide for the nutritional needs of children. This grant of R530 is the only permanent grant which is way below the Food Poverty Line. Carers struggle to properly provide for their children and have to find ways to provide for their children because the CSG is not enough. Many are vulnerable to reckless lending practices which puts them in a vicious cycle of debt.
4. Enhance the Grant Payment System: We urge the development of a well-administered, transparent, efficient, and effective grant payment system managed by the South African Social Security Agency (SASSA) to ensure timely and accurate disbursements to beneficiaries. Beneficiaries are in a panic with the current issue of the imminent expiry of SASSA Gold Card because they fear that they are at risk of not receiving their grants. The roll out of the Postbank Black card to replace the SASSA card has been plagued with problems such as: a lack of sites and capacity to support the rollout and limited communication to keep beneficiaries abreast of developments.
Social assistance is an essential part of the basket of goods that must be supported by adequate public services so that people living in South Africa can live with dignity. Additionally, we call on National Treasury to provide funding for the implementation of a Social Protection Floor, which provides a minimum basket of essential goods and services that everyone in South Africa needs to survive. This is line with the National Development Plan which aims to ensure the achievement of a “decent standard of living” for all South Africans by 2030.
Black Sash remains committed to advocating for social justice and the protection of human rights. We believe that these proposed measures are crucial steps towards alleviating poverty and promoting economic stability in South Africa.
For media enquiries and interviews, contact Oliver Meth on 068 352 9045 or email oliver@blacksash.org.za
