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President Cyril Ramaphosa says the African National Congress government will consider introducing a basic income grant in South Africa in 2021.
Speaking at the party’s 109th anniversary celebrations, Rampahosa said the consideration for the grant comes after the emergency financial measures introduced around the Covid-19 pandemic come to an end.
Despite the country’s limited resources, the country must seek to identify other poverty alleviation measures, he said.
“This year, the ANC government, and society in general, should continue discussions on the convenience and viability of a basic income subsidy to provide a social safety net to the poor people of our country,” he said.
The pandemic prompted President Cyril Ramaphosa to announce a temporary increase in existing grants of up to R300, including a R350 unemployment grant in late March 2020.
In a recent parliamentary question and answer session, Social Development Minister Lindiwe Zulu said that the cabinet had not made a formal decision to extend these grants to a universal basic income grant.
However, the ANC has previously said that it will also look at the feasibility of introducing a basic income grant as part of a series of outcomes decided by its National Executive Committee (NEC).
According to a June 2020 document viewed by Bloomberg, the ANC proposes to pay a monthly grant of R500 for those aged 19 to 59 who are not normally eligible for other aid it would cost the state R197.8 billion a year.
Between 50% and 60% of the money could be recovered by imposing additional taxes on those who have jobs, he said.
Read: Rand continues to slide on Covid-19 variant fears and stricter lockdown restrictions for South Africa
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