President Cyril Ramaphosa says that the African National Congress government will consider the introduction of a basic income grant in South Africa in 2021.<\/p>\n
Speaking at the party’s 109th-anniversary celebrations, Rampahosa said consideration for the grant comes after emergency financial measures introduced around the Covid-19 pandemic come to an end.<\/p>\n
Despite the country’s limited resources, the country needs to look at identifying other poverty alleviation measures, he said.<\/p>\n
“This year the ANC government, and broader society, will need to continue discussions on the desirability and the viability of a basic income grant to provide a social safety net to poor people in our country,” he said.<\/p>\n
The pandemic prompted president Cyril Ramaphosa to announce a temporary top-up of existing grants by up to R300, including a R350 unemployment grant in late March 2020.<\/p>\n
In a recent parliamentary Q&A, Social Development minister Lindiwe Zulu said that no formal decision had been taken by the cabinet to extend these grants into a universal basic income grant.<\/p>\n
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 upon by its National Executive Committee (NEC).<\/p>\n
According to a June 2020 document seen by Bloomberg<\/a><\/strong>, the ANC proposes paying\u00a0a R500 monthly grant<\/strong>\u00a0to those aged 19 to 59 who aren\u2019t normally eligible for other aid would cost the state R197.8 billion a year.<\/p>\n Between 50% and 60% of the money could be recouped by levying extra taxes on those with jobs, it said.<\/p>\n