Search Climate Insights Directory

The Institute for Economic Justice (IEJ) provides comments on the draft amendments to the Regulations to the Social Assistance Act, 2004, specifically regarding the Social Relief of Distress (SRD) grant. The IEJ argues that the current draft fails to address administrative barriers and fairness, warning that certain provisions could be vulnerable to legal challenge.

The Budget Justice Coalition criticizes South Africa's 2022 budget for prioritizing a budget surplus and corporate tax relief over critical social spending. The coalition highlights real-term funding cuts to basic education, healthcare, and the Department of Women, Children and Persons with Disabilities, arguing that these measures entrench poverty and gender inequality. The document advocates for an alternative human rights-based budget featuring progressive taxation and a Universal Basic Income Guarantee.

The Institute for Economic Justice contends that the 2022 South African budget prioritizes 'fiscal consolidation' over fundamental human rights, leading to real-term funding cuts in health and education. The author argues that these 'false economies' increase long-term costs and social volatility, citing the R50-billion damage from the July 2021 riots as a warning of the costs of inequality. The document calls for Parliament to reject the budget and demand a version that does not violate the Constitution.

The Institute for Economic Justice (IEJ) condemns the 2022/23 South African budget for prioritizing 'fiscal consolidation' and debt reduction over poverty alleviation and public service investment. The IEJ argues that the government is ignoring a revenue windfall of R181 billion to implement austerity measures that result in real spending cuts for healthcare and education, while maintaining an inadequate Social Relief of Distress (SRD) grant. The document criticizes the reduction in corporate income tax and the reliance on public-private partnerships (PPPs) for industrial policy, suggesting instead that progressive taxes on wealth and luxury goods should fund a Universal Basic Income Guarantee (UBIG).

The IEJ calls for the transition of the social relief of distress (SRD) grant into a permanent universal basic income guarantee (Ubig) set at the food poverty line of R624, funded by a R200bn commodity-driven revenue windfall. The organization criticizes the Employment Tax Incentive (ETI) as ineffective and proposes its cancellation to raise R4.9bn for the Ubig. Additionally, the IEJ argues against proposed 3.3% real-term cuts to government programs, citing deteriorating public services in areas such as healthcare and education infrastructure.

The Institute for Economic Justice (IEJ) challenges the narrative that social grants discourage South Africans from seeking work. The document argues that unemployment is caused by structural issues—such as a poor education system, deindustrialisation, and spatial inequality—rather than a lack of motivation or a "culture of entitlement." It provides evidence that grants, including the Social Relief of Distress (SRD) grant, often fund the high costs of job seeking, such as transport and data, and supports the implementation of a universal basic income guarantee (UBIG) as a necessary response to long-term unemployment.

The Institute for Economic Justice (IEJ) calls for the South African government to transition from the temporary Social Relief of Distress (SRD) grant to a permanent basic income support system. The author argues that while President Cyril Ramaphosa has committed to this goal, the National Treasury's fiscally conservative approach and 'technocratic machinery' threaten to undermine the policy through restrictive eligibility, low grant levels, and the blocking of social security reforms. The IEJ suggests that increasing the grant to R500 per month for 13.4 million people would be affordable using tax overruns, and proposes alternative financing mechanisms such as a social security tax, financial transactions tax, and resource rent tax to avoid reliance on VAT or personal income tax increases.

The Institute for Economic Justice and partner organisations advocate for transitioning the Social Relief of Distress (SRD) grant into a permanent universal basic income guarantee (Ubig) in South Africa. They argue that a Ubig is fiscally feasible through progressive taxation and would act as an economic stimulus by boosting local consumption and productivity. The authors call for the grant's value to be increased to at least the Food Poverty Line and eventually the upper bound poverty line (approximately R1,500), urging the presidency to establish a high-level review to implement this transition.

A civil society collective met with South African leadership on 18 January 2022 to advocate for the permanent extension of the R350 Covid-19 Social Relief of Distress (SRD) Grant and the transition to a Basic Income Guarantee (BIG). The group highlighted that the SRD grant supports approximately 10.3 million people and has reduced poverty and malnutrition, particularly among women. Key recommendations include increasing the grant to at least the Food Poverty Line of R624, integrating the grant into the Social Assistance legal framework to avoid its termination alongside the State of Disaster, and establishing a Multi-Stakeholder Task Team and a Presidential Expert Panel to manage the transition to a BIG.

The Institute for Economic Justice (IEJ) critiques South Africa's Just Energy Transition Investment Plan (JET-IP), a USD 8.5 billion deal with France, the UK, the US, and the EU. The analysis highlights that 81% of the financing consists of loans, with 89.4% targeted at infrastructure, leaving minimal funding for skills development (0.1%) and economic diversification (0.3%). The IEJ warns that the plan's reliance on 'de-risking' private investment through Independent Power Producers (IPPs) may lead to higher electricity tariffs, unsustainable sovereign debt from previous guarantee windows, and a failure to localize the renewable energy value chain. Furthermore, the document notes a lack of social security for workers in the Mpumalanga coal-belt, where up to 8,000 direct jobs could be lost. The IEJ advocates for a shift toward climate reparations, debt cancellation, and grant-based financing to ensure a truly just transition.

The Institute for Economic Justice submits that the Companies Amendment Bill 2021 introduces essential legal requirements for wage gap disclosure, binding votes on executive pay, and company ownership transparency to combat South Africa's severe socio-economic inequality.

The Institute for Economic Justice (IEJ) argues that South Africa's 2021 Medium Term Budget Policy Statement (MTBPS) prioritizes austerity and a budget surplus over necessary socioeconomic investment. The IEJ highlights significant real-term spending cuts in health, basic education, and social protection, asserting that such a contractionary stance stifles economic recovery and increases unemployment. The document advocates for a shift toward fiscal expansion, a comprehensive stimulus package, and the implementation of a wealth tax to fund a transformative economic agenda.

The Institute for Economic Justice (IEJ) criticizes the 2021 MTBPS for implementing real-term spending cuts across health, education, and social protection while prioritizing a primary budget surplus over economic stimulus. The IEJ contends that the government is ignoring available fiscal space and recommends a shift toward a comprehensive stimulus package, the implementation of a wealth tax, and the adoption of a Universal Basic Income Grant to foster an equitable recovery.

The IEJ criticizes the South African National Treasury's 'fiscal consolidation' approach, arguing that budget cuts during a recession are procyclical and retard economic recovery. The document asserts that there is significant fiscal space due to tax overruns and IMF funding, which should be used for a Universal Basic Income Grant (UBIG) and job creation initiatives. It warns that prioritizing debt reduction over public expenditure has led to real declines in spending for education and social grants, which undermines human capital and socio-economic rights.

The report explores the 'Use of Research Evidence' (URE) by policymakers in Africa, focusing on the intersection of CSO research and tax policy. Through case studies in Tunisia, Nigeria, Zambia, and Uganda, it finds that while the technical quality of CSO research is generally high, its influence is primarily determined by non-technical factors such as the timing of engagement, the perceived non-partisan reputation of the CSO, and existing relationships with policymakers. The document provides strategic lessons for CSOs to increase their policy impact and recommendations for funders to better support internal capacity and flexible funding timelines.

The document compares universal and targeted Basic Income Guarantee (BIG) models in South Africa, concluding that a universal approach for adults aged 18–59 is superior. It argues that targeted programmes suffer from exclusion errors, administrative complexity, and poverty traps. The paper proposes that a Universal Basic Income Guarantee (UBIG) can be funded via progressive taxation and social security contributions, serving as an investment to stimulate local economies and strengthen social cohesion. It recommends a rapid universal rollout over phased or targeted implementation to avoid arbitrary eligibility rules and administrative burdens.

The Institute for Economic Justice argues that current South African renewable energy procurement, primarily through the REIPPP, has led to privatisation and temporary employment. It critiques the initial SAREM research for lacking analysis on trade dynamics and public ownership. The brief recommends a 'Green New Deal' approach featuring import tariffs, state-backed cheap debt, a formal technology transfer system, and the establishment of a municipal-based solar PV recycling industry to ensure a 'Just Transition'.

The document examines the trade-offs between universal and targeted Basic Income Guarantees (BIG) for South Africans aged 18-59. It argues that targeting creates administrative burdens, high exclusion errors, and social stigma, whereas a Universal Basic Income Guarantee (UBIG) ensures broader coverage and social cohesion. The brief contends that a UBIG is fiscally feasible through progressive taxation, such as a Social Security Tax, and provides superior poverty reduction by allowing households to pool resources. It specifically critiques the use of employment status or household-level targeting, noting that the latter can exacerbate gender inequalities. The brief recommends a universal BIG as the most efficient path to economic recovery and social stability.

The Institute for Economic Justice (IEJ) critiques the South African National Treasury's approach to debt reduction through expenditure cuts, asserting that such austerity is economically flawed and violates constitutional and international human rights obligations. The report highlights the negative impacts of budget cuts on education and healthcare, noting that the 2021 Budget's non-interest spending is projected to contract at an annual real average rate of 5.2 per cent. To counter this, the IEJ suggests utilizing additional fiscal space from SARS revenue windfalls and IMF funding, implementing progressive taxes such as a wealth tax and social security tax, and launching a GDP-linked stimulus package. The document advocates for a Universal Basic Income Guarantee (UBIG) and the conduct of gendered human rights impact assessments to guide fiscal policy.

Civil society organisations contend that the South African government has failed to make sufficient progress on recommendations from the United Nations Committee on Social, Economic and Cultural Rights, specifically highlighting the need for social assistance for individuals aged 18 to 59 with little or no income.