A basic income grant represents a government commitment to provide a minimal income to all citizens without means testing or work requirements.
The possibility of a Basic Income Grant (BIG) in South Africa for 2025 hangs in a delicate balance, complicated by systemic challenges, financial constraints, and ongoing government deliberations, while South African Social Security Agency (Sassa) Social Relief of Distress (SRD) contested.
While President Cyril Ramaphosa hinted at the potential during the ANC 8 January statement, multiple obstacles threatened the implementation of this anticipated social relief measure.
Sassa basic income grant
A basic income grant represents a government commitment to provide a minimal income to all citizens without means testing or work requirements.
The primary goal is to alleviate poverty, promote economic growth, and support job creation, education, and health initiatives.
Political parties like GOOD and civil society organisations such as the Studies in Poverty and Inequality Institute (Spii) have long advocated for a Basic Income Grant of R1,268 – nearly four times the current Social Relief of Distress (SRD) grant.
Currently, South Africa’s most likely path to a permanent basic income grant appears to be through the existing SRD grant, which was increased to R370 per month earlier this year.
Approximately 13 million people receive this grant, making it a potential foundation for a broader income support system.
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Sassa issues
However, the path to a Basic Income Grant is fraught with significant obstacles.
Sassa has been plagued by a series of critical challenges that undermine confidence in its ability to manage such a program effectively.
The agency has been accused of being synonymous with fraud, corruption, and mismanagement.
Beneficiaries have faced numerous hardships, including endless queues, with some pensioners spending entire nights waiting to secure their grants. Tragically, some have even died while waiting.
ALSO READ: ‘Unrealistic and counterproductive’, says National Treasury on providing more money for SRD grant
SRD system fraud uncovered
A forensic investigation has uncovered alarming security vulnerabilities in the SRD grant system.
The investigation by Masegare & Associates Incorporated revealed critical security gaps that could expose beneficiaries’ personal information to potential cyber-attacks.
Most critically, the Sassa online system currently lacks encryption for sensitive data such as IDs, permits, and banking details.
Two first-year students from Stellenbosch University, Joel Cedras and Veer Gosai, exposed significant system weaknesses.
They demonstrated the ability to query 300,000 ID numbers rapidly without security barriers and revealed an implausible 91% application rate among February 2005-born individuals.
ALSO READ: CYBER ATTACKS: Sassa SRD grant beneficiaries IDs, permits and banking details may not be safe
Sassa SRD in court
The constitutionality of the SRD grant itself is currently under scrutiny.
The Gauteng High Court in Pretoria is hearing arguments from the Institute for Economic Justice (IEJ) and #PayTheGrants, challenging the R370 grant.
Sassa, the Minister of Social Development, and the Minister of Finance are opposing this litigation.
Meanwhile, the National Treasury presented a formidable barrier to expanding grant support.
During legal proceedings, Advocate Gilbert Marcus emphasised the government’s fiscal constraints.
He argued that South Africa’s small tax base, coupled with tax evasion and non-compliance issues, makes extensive grant expansion impractical.
Marcus highlighted the government’s perspective: “At the moment, South Africa has a higher pool of unemployed people than the number of people who are economically active and contribute to the tax base and, thus, limited resources are available to support the many programmes which are currently being undertaken across government.”
ALSO READ: Why only R20: SRD grant increase to R370 questioned in court
Sassa CEO suspended
The agency’s leadership has not been immune to controversy.
Sassa CEO Busisiwe Memela-Khambula was suspended on precautionary grounds following concerns raised by the Public Protector.
Social Development Minister Nokuzola Tolashe stated the suspension was necessary to conduct an investigation “without hindrance or interference.”
The challenges extend beyond administrative issues. Social Development Minister Sisisi Tolashe revealed that in 2024 alone, South Africa’s banking system suffered nearly R3.3 billion in losses due to fraud perpetrated by cybercriminals and identity theft.
ALSO READ: ‘Myriad of serious issues’ – Why Sassa CEO Memela-Khambula has been suspended
BIG in 2025 uncertain
While the desire for a Basic Income Grant remains strong, the path to implementation in 2025 appears uncertain.
The combination of financial constraints, systemic vulnerabilities, leadership challenges, and ongoing legal battles creates a complex landscape that may prevent the immediate realization of this social relief measure.
As President Ramaphosa noted earlier, the SRD grant makes “a strong case for a permanent form of targeted income support grant for the unemployed within our fiscal constraints”.
However, those constraints remain a significant hurdle to transforming this aspiration into reality.