ANC wants a basic income grant for South Africa

African National Congress (ANC) Secretary General Fikile Mbalula said that South Africa must introduce the Basic Income Grant.

He shared this information during his keynote address at the Galeshewe Open Air Arena in Galeshewe, Northern Cape.

Mbalula argued that a basic income grant is needed to help youth earn an income so they can access training and find employment.

He said that the ANC wants South Africa’s youth to be engaged and is creating work opportunities for them.

This basic income grant, he said, is aimed at opening opportunities for young people. “It is not meant for everyone. It is not for that,” he said.

He explained that it is challenging for young people to find work when they have not been to school and sit on a street corner.

This grant, he said, would give unskilled young people an opportunity to get training and skills and, in turn, get employed.

“We know that many of you have hands and want to work for yourselves. You don’t want a handout. You want to work,” he said.

Mbalula also promoted the growth of social grants under the ANC’s leadership, which increased significantly over the last 32 years.

“We’ve got more than 17 million people on social grants in South Africa. That is the power of the work the ANC is doing,” he said.

The ANC has previously positioned the COVID-19 Social Relief of Distress (SRD) grant as the primary mechanism for transitioning to a permanent Basic Income Grant.

The plan is to extend, raise the value of, and expand the coverage of the SRD grant to cover unemployed adults as a stepping stone toward a Basic Income Grant.

The party is positioning it as a policy mechanism to address South Africa’s high structural unemployment, inequality, and poverty.

“The ANC recognise the significance of implementing a Basic Income Grant (BIG) as a crucial step towards achieving social and economic change in our country,” it said.

“The current temporary Social Relief of Distress Grant should serve as the foundation for the transition to a permanent basic income support grant.”

“To address the exclusion of many people, we will increase the grant value and extend it to reach more beneficiaries.”

The ANC said that it is committed to financing the grant through progressive mechanisms to ensure financial sustainability and equitable redistribution.

“We will explore options such as new progressive tax measures, including a social security tax, while maximising fiscal space by utilising existing resources,” it said.