While the reintroduction of the social relief of distress grant is estimated to cost Mzansi around R23 billion, independent political analyst Theo Venter believes it is certainly worth taking the risk.
“A basic income grant, although it may be expensive, is probably the cheapest way of doing several things,” he tells Food For Mzansi.
This, after President Cyril Ramaphosa announced a grant of R350 to assist people during tough times while government was also still considering the feasibility of a permanent basic income grant. The R350-grant will remain in place until March 2022.
“It’s the cheapest way of sustaining people in dire poverty. It’s the cheapest way of maintaining the existence of rural South Africa.
“This is about rural South Africa where it is virtually impossible to get jobs. You need people to make a living. So, I’m very positive about the policy change that I’m expecting,” says Venter.
He believes the greater discussion of a basic income grant is long overdue. Also, he predicts that 2022 will see the introduction of many more grants to help the poorest of the poor to survive in South Africa.
Venter says, however, that we must understand that making grants permanent puts pressure on the fiscus.
“About 18 million South Africans depend on grants, while 11 million are at work and even fewer than 11 million are actually paying taxes. So, a small group is actually sustaining a much larger group,” he warns.
Going forward, Venter adds that every South African should be given a basic income grant and that criteria should be put in place to determines who qualifies.
“To get a basic income grant, you must, if you are a parent, indicate that your children are going to school, and if you’re young, you must commit yourself to education and further education. By doing this, the country will be killing two birds with one stone and that is a positive development,” he explains.
The long distance between rich and poor
The renowned political analyst also believes that a basic income grant will help to make the distance between the rich and the poor a little smaller. “So, all in all, I think it will have a positive impact, especially in the rural areas of South Africa, more than the cities.”
While some critics have argued that grants make people lazy and would inhibit them from entrepreneurship development, Venter believes otherwise.
“Firstly, this grant is additional income. It’s not enough to sustain the family. Secondly, I think it will help the farming community and people on farms with an additional income.
“Thirdly, I think it will stimulate entrepreneurship because now you will make it possible for the gogo that buys tomatoes at the market to go and sell it next to the road, or to start some other small kind of business. And that is going to stimulate entrepreneurship and the economy,” he says.
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