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The document challenges the belief that social grants discourage work, asserting instead that unconditional cash transfers can increase labor market participation and stimulate local economies. It argues that because structural poverty in South Africa prevents many from succeeding through hard work alone, and because essential unpaid care work (primarily by women) is ignored by traditional employment metrics, a UBIG is necessary to ensure a dignified life and provide a safety net that empowers workers to negotiate better conditions.

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  • Evidence suggests that social grants do not lead to a 'cycle of dependency' or a decrease in labor market participation; in South Africa, research indicates that grant recipients are more determined to work, driven by factors such as self-fulfillment and community contribution.
  • Cash transfers can actually facilitate job seeking by reducing the financial barriers associated with searching for employment. In 2019, the average cost of looking for work in South Africa was R938, and data shows the SRD grant increased job-seeking opportunities by 25%.
  • Unconditional cash transfers stimulate local economic growth and entrepreneurship. Examples include a 50% increase in non-agricultural production in Zambia, an 8% increase in agricultural investment in Lesotho, and a 51% increase in asset ownership in Kenya.
  • The claim that grant recipients spend money on 'temptation goods' like alcohol and tobacco is unsupported. A 2021 study found that 93.3% of South African SRD grant recipients (R350) used the majority of the funds for food, followed by electricity at 31.8%.
  • A universal basic income provides a safety net that allows workers to reject exploitative employment and improves their bargaining power for better wages and conditions, provided it is set above the poverty line and supported by strong labor protections.

Cite the original document

APA
Institute for Economic Justice (2023). Imisebenzi Iqhathaniswa Nezibonelelo. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiZulu.pdf
Chicago
Institute for Economic Justice. Imisebenzi Iqhathaniswa Nezibonelelo. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiZulu.pdf.
Wikipedia
{{cite report |author=Institute for Economic Justice |title=Imisebenzi Iqhathaniswa Nezibonelelo |date=November 2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiZulu.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{instituteforeconomicjustice2023imisebenzi, author = {{Institute for Economic Justice}}, title = {{Imisebenzi Iqhathaniswa Nezibonelelo}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-3-factsheet-isiZulu.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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