Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego

This fact sheet by the Institute for Economic Justice (IEJ) outlines fiscal pathways to implement a Universal Basic Income Guarantee (UBIG) in South Africa between 2023 and 2030. Based on research with Applied Development Research Solutions (ADRS), the document argues that a UBIG is fiscally viable and would stimulate economic growth while significantly reducing poverty.

• The IEJ, in collaboration with Applied Development Research Solutions (ADRS), developed three fiscal pathways (Low, Medium, and High speed) to implement a UBIG in South Africa from 2023 to 2030. These pathways target adults aged 18 to 59 regardless of their income source, with coverage expanding gradually based on poverty thresholds.
• Simulations indicate that implementing a UBIG would lead to a 67% reduction in poverty over the next two decades. Furthermore, GDP growth is projected to increase from a baseline of 2.2% to between 2.8% and 3.5% by 2030 across the three proposed pathways.
• The gross annual cost of providing a UBIG at the 2022 Food Poverty Line (FPL) of R624 per month is estimated at R255 billion. However, the actual cost is expected to be lower (between R153 billion and R204 billion) because it is estimated that only 60% to 80% of eligible people would initially register for the grant.
• The government can recover a portion of the UBIG expenditure through Value Added Tax (VAT), as low-income recipients tend to spend a high percentage of their grants on VAT-taxable basic goods. Research on the Social Relief of Distress (SRD) grant suggests recipients spend up to 81% of the grant on such items, returning approximately 12% to the government via VAT.
• To fund the net cost of UBIG, the IEJ proposes a combination of progressive taxes and spending shifts. Key suggestions include a Social Security Tax (SST) that could cover 25% of the cost, a 1% wealth tax on the richest 1% of the population (estimated to raise R143 billion annually), and a 25% VAT on luxury goods (estimated to raise R9 billion annually).
• Other proposed funding mechanisms include a Financial Transactions Tax (FTT) of 0.1% (estimated at R41 billion annually), a Rental Tax (RRT) (estimated at over R38 billion annually), and reducing government subsidies for pension funds and unemployment insurance, which are estimated at R133 billion and primarily benefit the wealthy.

APA

Institute for Economic Justice (2023). Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf

Chicago

Institute for Economic Justice. Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego |date=2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2023hlama, author = {{Institute for Economic Justice}}, title = {{Go hlama ditharollo tå mmuúo go mogolo o tlwaelegilego}}, institution = {Institute for Economic Justice}, year = {2023}, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Sepedi.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }