Latest news with #BasicIncomeGrant
The South African
7 days ago
- Business
- The South African
7 reasons WHY South Africa has an uncompetitive economy
South Africa's uncompetitive economy has been hiding in plain sight for years, say many top industry leaders. However, the World Bank has released a new report, explaining exactly why South Africa is one of the least competition-friendly economies in the world to do business in. However, it's not all doom and gloom for South Africa, as the bank also lists all the things that have improved drastically over the last twelve months. In its 'Driving Inclusive Growth in South Africa' report, the bank says the country is, in fact, far better off than in 2024, thanks to improved electricity supply and various structural reforms. The SASSA SRD grant will soon be transformed into a Basic Income Grant for the unemployed. But job creation would be better. Image: File Nevertheless, the World Bank still thinks South Africa is beset by several onerous regulations that make it an uncompetitive economy in which to do business: For example, the new Employment Equity quotas that come into effect on 1 September 2025 will further burden business. will further burden business. Moreover, South Africa's uncompetitive economy suffers from poor business dynamism and minimal job creation. This, in turn, leads to a lack of competition within the economy and an over-reliance on social welfare, which acts like a handbrake on economic growth. As such, the World Bank believes 'short-term wins' will create momentum and start to achieve a successful economic transformation. Key to strengthening South Africa's uncompetitive economy is easing various regulatory burdens on businesses. There are only 'one-third of the new business ventures in South Africa,' compared with other typical middle-income countries. A such, no enough new businesses – whether small, medium or large – are being created. Therefore, there are no new employable South Africans contributing to the economy. Even a few 'small wins' will help turn the tide for South Africa's uncompetitive economy, says the World Bank. Image: File Therefore, the World Bank says increased market competition will boost an uncompetitive economy and promote innovation. It says South Africa must, 'Rebalance its economic model by making it easier for investors and young workers to enter the market.' One way to achieve this is to reduce state-owned enterprises. These currently operate like monopolies in South Africa and are highly inefficient and wasteful of taxpayer money, reports Daily Investor . In conclusion, the bank says there's no obvious reason why such an approach, coupled with smart regulations, cannot be applied to help kickstart South Africa's uncompetitive economy. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
eNCA
11-07-2025
- Business
- eNCA
Black Sash welcomes basic income grant progress
CAPE TOWN - Human rights organisation Black Sash has welcomed Social Development Minister Sisisi Tolashe's budget vote, particularly the strides being made toward introducing a Basic Income Grant. While the organisation is encouraged by the progress, it has also raised concerns about key issues surrounding the grant's implementation.
eNCA
11-07-2025
- Business
- eNCA
Black Sash welcomes progress into progress on Basic Income Grant
JOHANNESBURG - While the Black Sash has welcomed the Social Development Department's budget and the progress on implementing a Basic Income Grant, the picture is less promising at the provincial level. In Gauteng, beneficiaries are growing increasingly concerned about budget cuts and the potential impact on social welfare services in the province.
The South African
08-06-2025
- Business
- The South African
Back to drawing board for 2026 revised SASSA SRD grant
Parliament sent back the revised SASSA SRD grant to the Department of Social Development this week. It's touted to become a Basic Income Grant for the unemployed in 2026. However, the working group wants to see urgent changes before it is approved. As such, a draft policy for the revised SASSA SRD grant was initiated with the committee for Social Protection, Community and Human Development back in November 2024. However, the committee sent it back to the DSD on Wednesday this week, citing 'affordability and economic opportunities for beneficiaries.' The none-permanent COVID-19 Social Relief of Distress grant has been extended every year since 2020. Image: File Before the new-look stipend is approved, it must survive various engagements. Like with the Office of the Presidency, National Treasury and Department of Employment and Labour. The South African Social Security Agency believes this will be concluded within a few months. From there a draft will be published for public comment. Policymakers from the DSD were told to 'better integrate pathways from income support to employment.' Currently, the grant pays out R370 each month to roughly 9-million beneficiaries living below the poverty line. However, the committee wants to see it become better 'aligned with broader economic objectives,' like jobs … South Africa's unemployment rate has only been increasing in the last decade, forcing many to exist in the informal sector. Image: File Essentially, the 2026 Basic Income Grant will be for those without jobs, but not to the point of creating long-term dependency on the grant. Therefore, the DSD and SASSA have to improve their data systems and align government programmes to make it work efficiently. Government is concerned that if and when they make the grant permanent, it must be budgeted for every year to remain viable (unlike the current R370 SRD which isn't permanent). While the department sets to work 'tightening' the revised SASSA SRD grant, it has requested that the National Treasury extend SRD for two more years. However, the Treasury has only approved the continuation of the current SRD grant until March 2026. There's simply not enough taxpayer money to ensure everyone who applies for a SASSA grant will be approved for one. Image: File In response to yet another delay to the revised SASSA SRD grant, many MPs were scathing of the DSD's work. The EFF's Noluvuyo Tafeni noted the policy has been in development for over two decades and was still not ready. Likewise, the DA's Alexandra Abrahams questioned whether the revised SASSA SRD grant policy would ever see the light of day. Finally, the MK's Nhlanhla Gcwabaza argued that SASSA should work to help people exit the grant system, not make them dependent on it … Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
07-06-2025
- The Citizen
Pensioners desperate for clarity after not receiving Sassa grants in June
Some have wondered whether they are among the 210 000 social grant recipients who have been flagged for not disclosing their income. Hordes of pensioners queued at Sassa offices in Durban on Thursday after not receiving their grant payments for June. Many said that prior to the old age grant payment on 3 June, they had not received any notification that they would not be paid. Some have wondered whether they are among the 210 000 social grant recipients who have been flagged for not disclosing their income. This comes as SASSA is clamping down on fraudulent grants. National Treasury has also told Sassa to implement stricter means testing and verification. ALSO READ: More than 200 000 will experience Sassa grant delays — here's why Recipients of the R350 SRD grant have complained for years about Sassa's faulty verification systems and restrictions, some of which have been declared unlawful by the high court. Recipients are nervous that the same challenges will now be experienced by other grant recipients. GroundUp visited Sassa offices in Central Durban and Durban South on Thursday. The offices were packed with people. At the Central Durban office, at least two-thirds of the people in line put up their hands when an official asked who was there to query their unpaid old age grants. Fatime Randeree, a 61-year-old pensioner from Overpoort, said she had been in line since 7:30am. She said the security guards kept moving her to different lines without explanation. She said they were told that Sassa staff were in a meeting all morning, which is why no one was being helped. We spoke to Randeree again later in the day. She said that when she finally got to the front of the line, she was told she cannot be helped without an affidavit confirming her husband's details. When she returned later, about half an hour before the branch closed, she was denied entry and given an appointment for Monday. Another woman in the line said that she had received her grant, but her husband had not. She had come to the Sassa office to request that someone come to her home to speak to him, because he is blind and bedridden. READ MORE: Basic Income Grant implementation postponed again She was frustrated that she had to 'leave her husband alone for hours' to query why he didn't get his grant payment. Sassa spokesperson Andile Tshona told GroundUp that the flagged beneficiaries 'were notified through SMS'. Unfortunately, some of the beneficiaries change their number and they do not come to our offices to notify us of the changes. Beneficiaries have a responsibility to inform Sassa of changes. Tshona said that when beneficiaries come forward to verify their income, their grants could be reinstated as early as next week. 'The review process outcome will determine if the beneficiary is still eligible for the grant or not.' Disability grants Disability grant recipients were also among those waiting in line. Mduduzi Nzila had come to reapply for his disability grant. It was his fourth time visiting the Sassa office since a car accident in October 2024 left him with limited mobility in both hands. His initial application had been declined, but he won an appeal. Despite this, he has still not received his grant. Nzila, who is now struggling to support his sister and four children who live with him, said he walked from his home in Morningside because he could not afford the taxi fare. In the Wentworth branch, located in Durban South, there was a long line of people to see the district surgeon for disability grant applications. Keygan Asogan told GroundUp that he had waited from 5:30am to see the district surgeon, only to be denied disability grant status. Asogan suffered a stroke in December 2021 and is no longer able to work. He first applied for an appointment with the district surgeon in April this year and spent months getting together all the proper documentation needed. READ MORE: Themba Matlou officially new Sassa's CEO: Here's what we know This included travel fees and a separate consultation with another doctor, said Asogan. The waiting period for an appointment to appeal is six months, said Asogan. 'I'm battling to pay my bills without being able to work. I can't afford to wait another six months.' Tiffany (we've withheld her surname) had come to reapply for her disability grant, something she has had to do every year, but has never faced any problems in the past. But this month she did not receive payment as Sassa now wants her to show proof of divorce from her husband. Tiffany has been separated from her husband for 16 years and does not know where he is. 'He was the one who crippled me,' said Tiffany, who walks on crutches. She has no other source of income and has had to sell some of her personal belongings to afford transport and rent. This article was republished from GroundUp under a Creative Commons license. Read the original article here.
