Ukwakha imodeli yemizila yezimali yemali engenayo eyisisekelo

The document outlines three financial pathways (low, medium, and high effort) to implement a Universal Basic Income Guarantee (UBIG) for South Africans aged 18 to 59. Using a simulation model developed with Applied Development Research Solutions (ADRS), the Institute for Economic Justice (IEJ) argues that a UBIG is fiscally sustainable and would stimulate economic growth, reduce poverty, and lower unemployment. The analysis suggests that while gross costs are high, the net cost is significantly reduced by VAT returns and a proposed social security tax (SST). Funding mechanisms include progressive wealth taxes on the top 1% of the population, luxury VAT, and the reduction of tax subsidies for pensions and medical aid.

• The simulation model identifies three implementation pathways for UBIG from 2023 to 2030, categorized by effort levels based on the benefit amount and the number of recipients. All three scenarios provide unconditional grants to individuals aged 18 to 59.
• Implementing a UBIG is projected to increase GDP growth from a baseline of 2.2% to between 2.8% and 3.5% by 2030, while reducing poverty levels by up to two-thirds over eight years.
• The gross annual cost of a UBIG set at the 2022 Food Poverty Line (R624 per month) is estimated at R255 billion, though actual costs are expected to be between R153 billion and R204 billion because only 60% to 80% of eligible people are projected to apply.
• The net cost of the program is estimated to be 50% lower than the gross cost due to direct returns via VAT and a proposed social security tax (SST), where high earners pay more than they receive in benefits.
• Proposed funding sources to ensure fiscal sustainability include a wealth tax on the top 1% (potentially raising R143 billion annually), a 25% luxury VAT (raising R9 billion annually), a Financial Transactions Tax (R41 billion annually), and a Resource Rent Tax (over R38 billion annually).

APA

Institute for Economic Justice (2023). Ukwakha imodeli yemizila yezimali yemali engenayo eyisisekelo. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiZulu.pdf

Chicago

Institute for Economic Justice. Ukwakha imodeli yemizila yezimali yemali engenayo eyisisekelo. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiZulu.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Ukwakha imodeli yemizila yezimali yemali engenayo eyisisekelo |date=November 2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiZulu.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2023ukwakha, author = {{Institute for Economic Justice}}, title = {{Ukwakha imodeli yemizila yezimali yemali engenayo eyisisekelo}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-isiZulu.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }