Paradoxes of Social Grants in South Africa: The Case of COVID-19 Social Relief of Distress Grant

Abstract

South Africa is largely a welfare state because of its extensive social welfare grants. Almost half of the South African population benefits from social welfare grants. Through a literature review analysis, this paper focused on the special COVID-19 grant, also known as the Social Relief of Distress (SRD) grant. The paper analysed technical reports, working papers from reputable institutions and journal articles on social grants in South Africa. The analysis revealed that social grants in general enable the beneficiaries to access basic needs such as food and clothing; improve living standards; and alleviate poverty. The analysis also showed that the COVID-19 grants reached the previously unreached segment of the population, provided funds for seeking employment; supported childcare; and enhanced digital skills. The provision of SRD was found to be plagued with corruption, lack of capacity of administrative units, and emerging dependence. There is high support for extending and sustaining the grant, while other sources decry the potential of the grant to promote unproductive behaviour among young people, who should be actively involved in the labour market. The paper recommends an objective evaluation of the SRD grant to counter unpleasant socio-economic spillovers and promote the intended purpose. This paper contributes to the scholarship on remedial and developmental welfare in South Africa, with possible lessons for other welfare states globally. Keywords: Social Grants, Dependence syndrome, COVID-19, Grant sustainability, welfare state, unemployment, poverty