Rights vs Austerity: The Battle for Decent Universal Basic Income in South Africa

The report critiques the current South African social assistance framework, specifically the SRD grant, as inadequate due to its low value and restrictive digital means testing. It contrasts a 'fiscal consolidation' approach favored by the National Treasury and international financial institutions with a rights-based approach advocated by civil society and the Department of Social Development. The authors recommend transitioning the SRD grant into a permanent basic income grant pegged to national poverty lines, funded through non-regressive measures like wealth taxes, and supported by inclusive consultative structures and secure digital systems.

• South Africa's unemployment rate is 42.6%, and the existing SRD grant is insufficient as it is valued at only 46% of the food poverty line (FPL).
• The reach of the SRD grant has been reduced by a restrictive means test and high exclusion errors resulting from ineffective digital systems.
• There is a conflict between the National Treasury's preference for fiscal consolidation—supported by the IMF and World Bank—and the push by civil society and the Department of Social Development for a rights-based universal income-support system.

APA

iej_admin (2024). Rights vs Austerity: The Battle for Decent Universal Basic Income in South Africa. Institute for Economic Justice. https://iej.org.za/resource/contribution/rights-vs-austerity-the-battle-for-decent-universal-basic-income-in-south-africa-2/

Chicago

iej_admin. Rights vs Austerity: The Battle for Decent Universal Basic Income in South Africa. Institute for Economic Justice, 2024. https://iej.org.za/resource/contribution/rights-vs-austerity-the-battle-for-decent-universal-basic-income-in-south-africa-2/.

Wikipedia

{{cite report |last1=iej_admin |title=Rights vs Austerity: The Battle for Decent Universal Basic Income in South Africa |publisher=Institute for Economic Justice |date=12 November 2024 |url=https://iej.org.za/resource/contribution/rights-vs-austerity-the-battle-for-decent-universal-basic-income-in-south-africa-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{iejadmin2024rights, author = {iej\_admin}, title = {{Rights vs Austerity: The Battle for Decent Universal Basic Income in South Africa}}, institution = {Institute for Economic Justice}, year = {2024}, month = nov, url = {https://iej.org.za/resource/contribution/rights-vs-austerity-the-battle-for-decent-universal-basic-income-in-south-africa-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }