The time is now for universal basic income in SA

In a country where more than half the population lives in poverty, and which is the most unequal in the world, the question is whether South Africa can achieve its first sustainable development goal (SDG), which calls for eradicating poverty by 2030, in the absence of bold policy action?

A comprehensive social security framework based on a universal basic income (UBI) grant is the only solution that can grow the economy and directly end poverty by 2030.

In 2015, South Africa and 192 other UN member states adopted the 2030 agenda for sustainable development. This was a commitment aimed at “leaving no-one behind”. However, in 2023 South Africa was still marked by poverty, inequality and unemployment.

South Africa is the most unequal country globally, with a Gini coefficient of 0.63. The expanded unemployment rate rose to 42.6% in 2024, disproportionately affecting black African women, of whom 50.4% are jobless.

More than 12.4-million adults are unemployed, and in excess of 28-million people depend exclusively on grants for their income. However, when it comes to both the child support grant and the social relief of distress grant, amounts are set far below the national food poverty line. 

These figures highlight a crisis that is not just economic, but also deeply social. Millions of people live below the 2024 food poverty line of R796 per person per month, which amounts to just R27 a day. 

If South Africa is truly to leave no-one behind, it needs an effective and inclusive social security system. This comprehensive and universal system must guarantee each citizen a decent basic income — in other words, a UBI.

A UBI grant would be a monthly cash payment provided unconditionally to every person living in South Africa. It would be set at the 2024 upper-bound poverty line of R1,634. The amount would increase annually to ensure everyone can meet their basic needs.

A UBI grant is the most feasible solution to tackle the country’s high levels of poverty and inequality. Such as grant would help eradicate both poverty and inequality, grow the economy, and ultimately allow the country to progress towards the attainment of SDG. Research shows that, with the right macroeconomic reforms, the UBI grant could be virtually self-financing within three years.

A UBI grant of R1,634 a month would allow individuals to make choices, such as starting small businesses, to improve the quality of their lives.

The implementation of UBI aligns with the SDGs. Specifically, it would accelerate progress towards meeting SDG 1 (no poverty) by ensuring all people living in South Africa have a basic income, thereby lifting millions out of poverty. It would also contribute to SDG 2 (zero hunger) by allowing families to afford nutritious food.

With their basic needs met, individuals could prioritise their health, contributing to SDG 3 (good health and wellbeing). The financial stability provided by a UBI grant would empower women, thus supporting SDG 5 (gender equality). By redistributing wealth, a UBI grant could also help bridge the gaps created by systemic inequalities, bolstering SDG 10 (reduced inequalities).

A guaranteed income could foster entrepreneurship and local investment, in line with SDG 8 (decent work and economic growth). What is more, a UBI grant could help to achieve SDG 12 (responsible consumption and production) by promoting sustainable economic behaviours.

Implementing a UBI grant is more than just an economic necessity — it is a moral imperative. South Africa must take bold steps to ensure its citizens can thrive. Providing a UBI grant is an investment in human dignity that promotes a society in which everyone can benefit. A UBI grant is the tool we need to reduce poverty and create a floor below which no person in the country ever has to fall. This solution will end poverty overnight.

As we strive to meet the UN 2030 agenda deadline, it is crucial to recognise that effective social security systems are a necessary foundation for sustainable development. A UBI grant represents a pathway, not just to economic stability, but also to a more equitable and just society. It is a means of fostering social cohesion and economic growth.

A UBI grant would alleviate pressures on social services and enable families to invest in their futures. Moreover, it would catalyse community development, encouraging local businesses and initiatives that would contribute to overall economic vitality. It could end the destitution that now blights the lives of so many millions of women. 

On September 24, at the launch of an International Labour Organisation’s report on social protection at the UN, the South African government committed itself to universal social protection and called on all countries everywhere to meet the same commitment. And if the government of national unity remains committed to ending poverty, then UBI must become a national priority. The time is now.

• The Social Policy Initiative is a feminist think-tank based in Johannesburg. Its work is supported by Action for Southern Africa and Act Church of Sweden.