Over 40% of South Africans Rely on Social Grants as Poverty Deepens, Experts Warn System is Inadequate

Over 40% of South Africans Rely on Social Grants as Poverty Deepens, Experts Warn System is Inadequate. Image source: South Africa Today.

New data from Statistics South Africa’s General Household Survey reveals that more than 40% of the country’s population depends on social grants for survival, with over 50% of households receiving some form of government assistance. The findings highlight the growing economic crisis, with grants now the second-largest source of income for many families.

Experts warn that despite the high dependency rate, South Africa’s social grant coverage remains insufficient compared to other upper-middle-income nations. Kelle Howson, senior researcher at the Institute for Economic Justice (IEJ), noted that while South Africa ranks among wealthier developing countries, its social protection system lags behind peers.

“The average social protection coverage among upper-middle-income countries is 71%, but South Africa only reaches 65%,” Howson explained. “This is inadequate given our extreme levels of poverty and inequality.”

Grants Not Keeping Up with Poverty Crisis

Alfred Moyo of advocacy group Pay the Grants criticized the government for failing to meet its constitutional obligation to protect citizens from hunger. “Grants are not a political favor—they are a right,” Moyo said. “Yet millions who qualify are excluded, and the amounts are too low to cover basic needs.”

The Social Relief of Distress (SRD) grant, a temporary COVID-19 measure, remains at R370 per month—far below the food poverty line. The Child Support Grant has also seen minimal increases, leaving families struggling.

Debunking the “Dependency” Myth

Howson dismissed claims that grants create a culture of dependency, citing research showing recipients actively seek work. “Grants help people escape poverty traps,” she said. However, restrictive means-testing—where earning additional income risks losing grant eligibility—can discourage informal work.

Moyo argued that unemployment, not grants, is the real issue. “People don’t choose R370 over a job—jobs simply don’t exist,” he said, blaming decades of failed economic policies and privatization.

Calls for Universal Basic Income

Both experts urged expanding grants into a Universal Basic Income Grant (UBIG) to cover all in need. Moyo rejected the proposed “jobseeker grant” as insufficient, while Howson pointed to Nordic models where robust welfare systems complement high employment.

“South Africa needs a comprehensive safety net,” Howson said. “The SRD grant should be the first step toward universal coverage.”

With unemployment at 32.9% and inequality worsening, the debate over grants underscores a dire need for systemic reform. As Moyo put it: “The state’s failure to create jobs leaves grants as the only lifeline for millions.”

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