DSD’S SUSTAINABLE LIVELIHOODS ROUND TABLE: ADVANCING ECONOMIC EMPOWERMENT FOR GRANT RECIPIENTS

By Precious Mupenzi

• The Generating Better Livelihoods (GBL) Project seeks to connect social grant recipients with sustainable economic opportunities as part of South Africa’s broader poverty alleviation strategy.
• The project is built around five key pillars: social protection, social empowerment, livelihood promotion, financial inclusion, and employment pathways, each aiming to empower beneficiaries with the skills, assets, and resources needed for long-term self-reliance.
• Currently in its pilot phase, the GBL Project aspires to reach 500,000 recipients by 2030, aiming for a government-coordinated model that brings sustainable livelihood opportunities to vulnerable communities nationwide.

At the ongoing Sustainable Livelihoods Round Table Discussion in Cape Town, Brendan Pearce of FinMark Trust presented insights into the Generating Better Livelihoods (GBL) Project, an initiative focused on connecting social grant recipients with sustainable economic opportunities. Facilitated by the Department of Social Development (DSD), this roundtable discussion underscores the value of partnerships and innovative strategies to address poverty, high unemployment, and entrenched inequality in South Africa.

Pearce highlighted South Africa’s significant challenge in creating lasting economic empowerment for its social grant recipients, especially given limited economic opportunities for marginalised populations. “Many grant recipients, particularly child support grant (CSG) beneficiaries, remain trapped in poverty cycles due to a lack of diversified income sources,” he explained. The GBL Project, Pearce noted, is structured to equip these recipients with the skills, assets, and resources necessary for breaking free from poverty sustainably. “The aim is to give participants a ‘big push’ out of poverty, rather than offering temporary relief,” he added.

The GBL Project exemplifies a strong collaboration between DSD and FinMark Trust, leveraging FinMark’s expertise in expanding financial markets to impoverished communities. FinMark’s role focuses on financial inclusion, equipping grant recipients with essential skills in financial literacy, budgeting, and debt management. The partnership also includes the National Development Agency (NDA), which builds local capacity and reinforces civil society’s role in poverty alleviation.

At the heart of the GBL Project is the “graduation approach,” an internationally recognised model inspired by BRAC International’s successful poverty alleviation programmes. This approach promotes a series of steps, including skills training, livelihood planning, and asset transfers, to help beneficiaries achieve economic independence. “Partnering with DSD enables us to tap into a broader support network, integrating financial literacy, employment pathways, and social empowerment,” Pearce stated.

The GBL Project is built on five main pillars, each designed to address a different aspect of economic empowerment:

The GBL Project is founded on five key pillars, each targeting a unique aspect of economic empowerment:

1. Social Protection: Ensuring access to essential needs, with support from Community Nutrition and Development Centres (CNDC), though gaps remain, particularly in food security.
2. Social Empowerment: Recognising low self-esteem and the impact of gender-based violence (GBV) among participants, the project offers life skills training, social integration, and GBV awareness programmes through organisations like Lifeline and Khula Youth.
3. Livelihoods Promotion: With 70% of participants interested in entrepreneurship, the project partners with agencies like the National Youth Development Agency (NYDA) and Small Enterprise Development Agency (SEDA) for business skills training. However, funding constraints limit participants’ ability to register businesses or access start-up capital.
4. Financial Inclusion: Many participants lack financial management skills and sometimes rely on informal lending. The Financial Sector Conduct Authority (FSCA) and Banking Association of South Africa (BASA) work with GBL to enhance financial literacy, though Pearce noted the need for expanded partnerships to scale these initiatives.
5. Employment Pathways: The project connects participants with job opportunities through employment agencies like Harambee, though Pearce acknowledged that most job readiness programmes are concentrated in urban areas, limiting access for rural participants.

Currently a pilot programme, the GBL Project operates across three provinces, with plans for expansion based on initial success. By 2030, it aims to reach 500,000 people, requiring robust policy support, secure funding, and strong backing from both private sector and civil society organisations. “We envision a government-led model to bring sustainable livelihood opportunities to social grant recipients nationwide,” Pearce concluded. “Reaching this scale will necessitate cross-sector collaboration, aligning efforts to economically empower South Africa’s most vulnerable communities.”