iej-ubig-8-factsheet-isixhosa-e6625c8560c9349a.pdf

This fact sheet outlines a proposed phased implementation of a Universal Basic Income Guarantee (UBIG) in South Africa from 2023 to 2030. Based on research by Applied Development Research Solutions (ADRS), the document presents three pathways (low, medium, and high) to introduce a monthly grant for all adults aged 18 to 59, arguing that such a system is fiscally sustainable and would stimulate economic growth, reduce poverty, and lower unemployment.

• The proposed UBIG is designed as a grant for every person aged 18 to 59 without conditions, with the number of recipients and the grant value increasing gradually based on poverty levels. The funding model relies on a combination of a wealth tax, a future Social Security Tax (SST), and government revenue generated through increased VAT spending by grant recipients.
• Research by ADRS suggests that implementing a UBIG would positively impact South Africa's economy by 2030. Compared to a baseline GDP growth of 2.2%, the UBIG pathways are projected to result in growth between 2.8% and 3.5%, while reducing poverty to two-thirds of current levels.
• The gross cost of providing a UBIG at the Food Poverty Line (FPL) of R624 per month is estimated at R255 billion annually, though actual costs are expected to be lower (between R153 billion and R204 billion) because not all eligible people are expected to apply. The net cost is estimated to be approximately 50% of the gross cost due to revenue returns from VAT and the Social Security Tax.
• To fund the UBIG without harming public services or relying on regressive taxes like VAT, the document suggests several progressive revenue sources: a 1% wealth tax on the top 1% of wealthy individuals (estimated to raise R143 billion annually), a 25% luxury VAT (estimated at R9 billion), a 0.1% Financial Transactions Tax (R41 billion), and a Resource Rent Tax (over R38 billion).

APA

Institute for Economic Justice (n.d.). iej-ubig-8-factsheet-isixhosa-e6625c8560c9349a.pdf. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiXhosa.pdf

Chicago

Institute for Economic Justice. iej-ubig-8-factsheet-isixhosa-e6625c8560c9349a.pdf. n.d. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiXhosa.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=iej-ubig-8-factsheet-isixhosa-e6625c8560c9349a.pdf |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiXhosa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjusticendiejubig8factsheetisixhosae6625c8560c9349apdf, author = {{Institute for Economic Justice}}, title = {{iej-ubig-8-factsheet-isixhosa-e6625c8560c9349a.pdf}}, institution = {Institute for Economic Justice}, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiXhosa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }