The Department of Social Development plans to request the approval of a Basic Income Support (BIS) policy by the end of this financial year.

Should this request be approved and all necessary funding and legislative considerations proceed as planned, South Africa will introduce a new form of social grants in the 2028/29 financial year.

Social Development Minister Sisisi Tolashe recently revealed her department’s plans in response to a parliamentary question from ANC MP Tshilidzi Munyai.

Munyai asked the minister for details of a clear roadmap and key milestones for transitioning South Africa from the Social Relief of Distress grant to a permanent BIS grant.

The debate around a BIS grant for South Africa has been ongoing for years, with the ANC announcing its intentions to establish one at the 2022 ANC policy conference.

President Cyril Ramaphosa reiterated this plan in his 2023 State of the Nation Address, saying work is underway to develop a mechanism for targeted BIS.

However, these promises of a BIS grant have yet to lead to any concrete proposals or plans, although it is believed that the government will use South Africa’s current SRD grant as a basis.

The SRD grant currently functions similarly to a BIS grant, but was introduced as a temporary measure to provide relief to struggling households during the COVID-19 pandemic.

Although initially considered temporary, this monthly grant has been extended annually since its introduction. In 2024, the amount was also increased from R350 to R370 per month.

Opinions on whether a universal income grant would be positive for South Africa are generally split.

Those opposed typically base their critiques on a lack of funding for a BIS grant, as the country already spends around R35.2 billion on the SRD grant alone.

The ANC has previously floated plans to finance a BIS grant through a wealth tax, closing tax loopholes, addressing base profit shifting by corporates, and a transactions tax.

However, many believe this would be counterproductive as South African taxpayers are already overburdened, and higher or new taxes could have severe negative consequences on tax revenue.

Those in favour of a BIS grant for South Africa have argued that it would go a long way in addressing the country’s severe inequality.

In a recently published paper, a team of economists conducted an economic modelling exercise to investigate the effect of a basic income grant (BIG) targeting all individuals aged 18 to 59 in South Africa.

The economists found that a BIG could significantly reduce poverty and inequality in the country.

However, they noted that these gains would require carefully targeted and implemented interventions over a multi-year period.

The government’s BIG plans

Tolashe confirmed in her response that her department plans to approach Cabinet by the end of this financial year, 2025/26, to consider a request to approve the BIS policy. 

She emphasised that, although the Social Development Department is responsible for policy making, the Cabinet is responsible for approving this plan. 

The minister explained that, should approval be granted by the end of this financial year, the 2026/27 financial year will be dedicated to amending the Social Assistance Act to cater for BIS. 

“All Parliamentary processes need to be followed to ensure approval of the legislation. This process will be followed by amendment of the Social Assistance Regulations,” she said. 

Tolashe intends to conclude this process by the end of the 2027/28 financial year. 

Following this, the approval of the amendments to the Social Assistance Regulations will be subject to securing funds from the National Treasury. 

The approval of the Regulations will give effect to the introduction of the new form of social assistance in the form of BIS for the working age population in the 2028/29 financial year.

“The department proposes that the government should continue providing Covid-SRD for the next two financial years, to ensure continuity of support for the affected groups while the policy approvals and legislative amendments are under consideration,” Tolashe said.