Why does South Africa need a Universal Basic Income Guarantee?

The Institute for Economic Justice advocates for a Universal Basic Income Guarantee (UBIG) in South Africa, defining it as a government commitment to ensure all adults have a regular cash benefit to meet basic needs as a right. The document highlights that while social grants have been effective, gaps remain for able-bodied adults aged 18-59, and the current Social Relief of Distress (SRD) grant is temporary and limited. It asserts that a UBIG, supported by complementary policies like a just energy transition and industrial policy, could eliminate poverty for the 18.3 million people unable to meet basic food needs, improve health and education, and reduce gender inequality.

• South Africa faces severe unemployment and poverty, with an expanded unemployment rate of 44.1% in the second quarter of 2022. While social grants are the most effective tool against extreme poverty—benefiting approximately 50% of households in 2021—there is no permanent income support for able-bodied adults between 18 and 59.
• A UBIG set at the highest poverty line would eliminate poverty and end hunger in South Africa, where government estimates indicate 18.3 million people lack sufficient income for basic food needs and over half the population lives in poverty.
• The document argues that a UBIG provides multiple societal benefits beyond poverty alleviation, including improved nutrition, health, and educational attainment, increased autonomy for women to reduce vulnerability to gender-based violence, and enhanced social cohesion.
• The implementation of a UBIG is framed as a constitutional and international obligation. Section 27 of the South African Constitution guarantees the right to social security, and the UN Committee on Social, Economic and Cultural Rights found the current grant system insufficient, calling for a basic income grant.
• To maximize the impact of a UBIG, the document states it must be paired with complementary interventions, including a just energy transition strategy, a high-impact industrial policy for job diversification, an appropriate macroeconomic framework, and expanded public services.

APA

Institute for Economic Justice (2022). Why does South Africa need a Universal Basic Income Guarantee? https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-1-fact-sheet-web.pdf

Chicago

Institute for Economic Justice. Why does South Africa need a Universal Basic Income Guarantee? 2022. https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-1-fact-sheet-web.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Why does South Africa need a Universal Basic Income Guarantee? |date=November 2022 |url=https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-1-fact-sheet-web.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2022why, author = {{Institute for Economic Justice}}, title = {{Why does South Africa need a Universal Basic Income Guarantee?}}, institution = {Institute for Economic Justice}, year = {2022}, month = nov, url = {https://www.iej.org.za/wp-content/uploads/2022/12/IEJ-UBIG-1-fact-sheet-web.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }