EXPERTS CALL FOR REFORMS TO EMPOWER SOUTH AFRICA’S SOCIAL GRANT RECIPIENTS

By Precious Mupenzi

• In Cape Town, the Department of Social Development (DSD) convened with experts to address the barriers preventing social grant recipients from achieving sustainable livelihoods, highlighting funding, skills development, and policy reform as critical focus areas.
• Stewart Ngandu from the Human Sciences Research Council (HSRC) outlined the systemic challenges faced by grant recipients, including limited access to employment, financial services, and resources, stressing the need for urgent reforms to break cycles of dependency.
• Ngandu proposed targeted investments in rural infrastructure, inclusive financial products for marginalised groups, and the integration of job-readiness programs into social assistance frameworks to create pathways to economic independence.

Funding, skills development, and policy reform emerged as critical focus areas in Cape Town, where the Department of Social Development (DSD), alongside leading experts, convened to tackle obstacles preventing social grant recipients from achieving sustainable livelihoods.

Stewart Ngandu, Chief Research Manager at the Human Sciences Research Council (HSRC) and a prominent expert on equitable education and economies, drew on extensive research to outline the deep-rooted challenges facing social grant recipients in South Africa. His expertise, built on years of studying social protection systems and sustainable livelihoods, underscored the urgent need for reforms in funding models, skills training, and regulatory frameworks. According to Ngandu, without these strategic changes, grant recipients will remain locked in cycles of dependency and poverty.

Ngandu opened by addressing the structural barriers facing social grant recipients, noting that limited access to formal employment, credit, and essential resources traps many in precarious, informal work, making it difficult to achieve economic independence. “Many beneficiaries, especially young adults and those in rural areas, are forced into low-paying, unstable jobs, which means they need social grants” he said. To address this, he proposed expanding financial inclusion through microcredit and savings programmes to provide beneficiaries with capital for small businesses, adding, “Increasing funding for training subsidies could prepare recipients for formal employment opportunities, creating a bridge to stable livelihoods.”

He also emphasised the critical issue of spatial inequality, with rural communities lacking infrastructure and resources to support economic development. “The absence of reliable transportation, water access, and local markets isolates many rural residents, limiting their ability to access jobs or start businesses,” he explained. To counter this, he recommended targeted investments in rural infrastructure and community hubs for training and resources, stressing, “Bringing services closer to rural communities can create vital links to economic hubs and opportunities for sustainable income.”

Social exclusion, particularly for women, individuals with disabilities, and older person caregivers, poses another significant challenge. Ngandu noted that these vulnerable groups face systemic exclusion from financial services and formal employment. “Addressing these gaps is critical if we are to reduce dependency,” he said, proposing targeted financial products for marginalised groups, such as microloans, along with inclusive training programmes tailored to their needs. “We need to prioritise policies that open pathways for marginalised groups to participate in the economy,” he added, pointing to models like Canada’s Accessible Canada Act as a potential guide for inclusive hiring practices.

He also highlighted the severe resource and information gaps prevalent in rural and marginalised communities, where basic resources like internet access, transportation, and educational opportunities are limited. “Without access to market information or digital literacy programmes, beneficiaries are cut off from viable economic activities,” he explained. To address these gaps, he proposed establishing rural development hubs integrated with technology and multi-service offerings, where job training, digital literacy, and even telehealth could be accessed in one location. For remote areas, mobile units could extend these services, he suggested, stating, “We must reduce the barriers that physical isolation creates, ensuring that even rural residents have a chance at self-sufficiency.”

Many grant recipients remain dependent on cash transfers due to limited employment options. Ngandu stressed that transitioning beneficiaries from cash dependency to formal employment requires linking social grants with job-readiness programmes and public-private partnerships. “By incorporating job-search assistance and vocational training directly within the social assistance framework, we can offer recipients a real opportunity for financial independence,” he said. He pointed to countries like the UK and India, where similar models link social assistance to active job-seeking requirements and provide tax incentives for businesses hiring grant recipients, adding, “Such programmes could serve as sustainable pathways to independence.”

Regarding human capital development, Ngandu emphasised that many grant recipients lack the skills necessary to enter the labour market. “Skills and education are critical for sustainable livelihoods, yet many recipients don’t have access to relevant training,” he noted. His suggestions included increasing funding for vocational training programmes, scholarships, and stipends, and investing in technology-enhanced learning platforms accessible in rural areas. “Education and skills development are key to breaking the dependency cycle,” he concluded, emphasising that prioritising grant recipients in national skills development initiatives would open doors to formal employment.

In his final remarks, Ngandu underscored the importance of collaboration across government, the private sector, and community organisations to bring these recommendations to life. “Breaking the dependency cycle requires comprehensive policy and funding reforms, as well as committed partnerships across all sectors to create sustainable livelihoods,” he said, presenting a roadmap aimed at empowering South Africa’s social grant beneficiaries with the skills, resources, and opportunities needed for economic independence.