President Cyril Ramaphosa has reiterated his commitment to expanding the Social Relief of Distress (SRD) grant, aiming to develop a more sustainable income source for South Africa’s unemployed population.
Introduced in 2020, the SRD grant initially provided R350 to millions of South Africans to help them avoid falling into extreme poverty. It has since been increased to R370, benefiting over 10 million people.
During his 2024 State of the Nation Address (SONA), Ramaphosa emphasized that the SRD grant would serve as a foundation for establishing a long-term income support system for those without jobs. “The Social Relief of Distress Grant is an essential tool in alleviating extreme poverty,” he stated. “We will use this grant as a base for creating a sustainable income support mechanism for unemployed individuals.”
With unemployment in South Africa exceeding 32%, the country faces one of the highest jobless rates globally.
Ramaphosa’s comments are not new, as he has previously expressed intentions to expand the SRD grant, reiterating the same plans in his 2024 SONA speech.
While some critics argue that such grants foster dependency, others believe they are vital to preventing widespread malnutrition and poverty. However, concrete steps toward transforming the SRD into a permanent basic income grant have been sparse.
In late 2024, the National Treasury dampened hopes of introducing a full basic income grant, warning that it could cost the economy upwards of R400 billion annually—an unsustainable figure without significant tax increases. A basic income grant would potentially cover 35 million South Africans aged 18 to 60, pushing the total cost to a staggering R400 billion each year.
Despite these financial challenges, the expansion of grants is still on the table. A recent High Court ruling declared that the SRD grant, initially viewed as a temporary measure, is now a permanent component of South Africa’s social assistance framework. The government has yet to incorporate the SRD grant into its long-term budgets, renewing its validity each year based on the available financial resources.
The Court ruled that the grant’s affordability should not be a barrier to providing aid to those in poverty, prompting the Bureau for Economic Research to suggest that the number of eligible recipients could increase significantly, from 10.5 million to over 18 million. This shift would require an additional R35 billion per year. Treasury is reviewing the court’s ruling and may appeal.
More details about the future of South Africa’s grant system are expected to emerge during the 2025 Budget Speech by Finance Minister Enoch Godongwana, scheduled for 19 February 2025.
