By Lehlohonolo Lehana.
As the country prepares to honour Nelson Mandela life, President Cyril Ramaphosa has warned against labelling social assistance programmes as “breeding dependency”.
Writing in his weekly letter to the nation, Ramaphosa echoed Mandela’s belief that ‘while poverty persists, there is no true freedom’, citing the fact that government spends millions on the social wage.
He said that the funds spent on social protection are not wasted and should not be referred to as ‘handouts’. “They make a real difference in people’s lives, both now and in the future,” he said.
Currently, the government spends, excluding debt servicing costs, around 60% of the government’s budget on the social wage.
The social wage includes the likes of free housing, utilities, education and health and social grants such as the Social Relief Distress Grant that was instituted temporarily during Covid-19 but has reached its third year of implementation.
He referenced the following achievements, including the fact that over 13 million learners receive basic education, with many attending no-fee schools.
Health care is provided for 50 million people without private insurance. Additionally, subsidized housing has positively impacted the lives of numerous families, he added.
Ramaphosa said that the expansion of social protection can only occur at the pace and scale the fiscus can afford.
“We are focused on growing our economy and developing sustainable solutions to support pro-poor spending,” he said.
“A growing economy provides the funds we need to strengthen our social protection measures, while the support that poor people receive, especially in access to education and health, enables them to better contribute to the economy.”
Ramaphosa said that through the country’s social support system, it is meeting its collective responsibility to the most vulnerable in society as well as investing in the country’s future.
A recent World Bank assessment noted that South Africa’s grant and social assistance systems play a critical role in mitigating poverty. The report found our systems and programmes to be “effective, well-targeted and providing sizeable benefits to the poorest households”.
“The provision of comprehensive social protection will not, on its own, end poverty or inequality in our society. To really end poverty, we need an economy that grows, attracts investment, creates jobs and allows new companies to emerge and thrive, “Ramaphosa said.
Ramaphosa called for government’s policies and programmes to work together to build an inclusive economy and provide social protection to the poor and unemployed.