Why the Basic Income Grant is South Africa’s New Frontier

Why the Basic Income Grant is South Africa’s New Frontier

On the 28th of January 2026, a high-stakes conversation unfolded at the Nelson Mandela Foundation, organised by Amandla.mobi in partnership with Oxfam SA, Social Policy Initiative and Action For Southern Africa. Civil society leaders, economists, and community activists gathered for a panel titled: “Basic Income Grant: An Urgent Case for South Africa’s Economic and Social Future.”

The event served as both an educational masterclass and a sobering wake-up call regarding the country’s current economic trajectory and the deep-seated inequality that continues to stifle its potential.

The core of the discussion centered on a painful irony: while South Africa’s Constitution promises dignity and social security for all, the reality for millions is a daily struggle against exclusion. As the most unequal country in the world, South Africa’s current social protection system was described by panelists as a collection of “breadcrumbs” that barely sustain life, let alone allow for growth. Millions of able-bodied people are willing to work but are locked out of an economy that isn’t growing, yet they don’t qualify for traditional grants.

Koketso Moeti, Executive Director of Amandla.Mobi, set a powerful tone for the day, asserting that we must move beyond a society of mere survival to one where households and communities have the genuine opportunity to thrive.

“We need to move beyond people merely surviving… we need a society in which households, communities and our society as a whole has the opportunity to thrive.” — Koketso Moeti, Amandla.Mobi

Supporting this vision, Dr. Pali Lehohla, Professor of Practice at UJ & Former Statistician General of South Africa, provided a data-driven perspective that dismantled several long-standing myths used to stall progress. He noted that 66% of South Africans live below the poverty line, trapped in a “vulture culture” of inefficient bureaucracy and stagnant human capital. Crucially, Dr. Lehohla debunked the “myth of laziness,” citing evidence from Kenya and Namibia that suggests people do not stop working when they receive grants; instead, the stability allows them to seek work more effectively. He highlighted that a Basic Income Grant would create a 1.78 economic multiplier, turning a social safety net into a powerful engine for GDP growth by putting purchasing power directly into the hands of the people.

The human rights dimension was brought to the fore by Nomahlubi Khwinana of the South African Human Rights Commission and Jasmina Papa International Labour Organisation (ILO) and a Social Protection Specialist. They argued that social protection is not a “gift” from the state, but a fundamental human right. Jasmina shared global evidence showing that for every dollar invested in social protection, GDP can increase by up to five dollars over two years. Meanwhile, Nomahlubi pointed out the failure of local governance, noting that many municipalities ignore their Integrated Development Programs (IDPs) and allow wealth from industries like mining to leave communities without building essential infrastructure like schools or clinics.

The most impactful moment of the day came from Basetsana Meletse, Community Leader and Amandla.Mobi Member, who spoke to the “brokenness” of families living in constant desperation. She described a mental health crisis in townships where people “wear a smile” while feeling sick with worry inside, afraid to even wake up to the reality of their empty cupboards. She argued that a grant of R2,600 would be “like a movie” for many; a transformative moment of dignity that would restore peace to households currently ravaged by the stress of poverty. This sentiment was echoed by Isobel Frye, Senior Policy Advisor at Oxfam South Africa, who challenged the state to move into a new era of tax-funded social security that covers everyone, rather than relying on an outdated formal employment model that excludes the majority of our people.

As the event concluded, the message was clear: the era of neoliberal “trickle-down” economics has failed South Africa’s most vulnerable. Pooven Moodley, Interim Executive Director of Oxfam South Africa, closed with a powerful rallying cry, reminding the audience of our long history of mobilization; from the fight against apartheid to the march for HIV treatment. He urged everyone to find the strength to say, “enough is enough,” pointing to the upcoming State of the Nation Address and the Budget Speech as critical moments to demand change. The consensus was unanimous: a Basic Income Grant is no longer just a policy suggestion; it is an urgent economic and moral necessity for a stable, just, and inclusive South Africa.

“How is it possible that families are living on R350, or R370, and one person has $728 billion in terms of wealth, and a South African, who, probably by next time this year, will be the first person to reach $1 trillion in wealth, one person from South Africa, and that tells a deep story of inequality and vision.” I’ve seen it in so many au meetings over the years, the finance ministers meeting about illicit flows from Africa, every side you turn, and you see how money is taken out in different ways. It’s so shocking how it happens and the extent and how we go on with life, as if that’s the norm. We can’t let everything be stolen in this country. And I do think, as all of the information was presented today, we have reached that point around this campaign and this issue, if we don’t fully stand up now, for me, this is the time, this is the year we do it. If we don’t do it this year, we’ll have to wait, you know, maybe another 5 to 10, years. So, we have to, each one of us, find that strength within ourselves to say we’ve had enough. Now’s the time we need to stand up. And we’ve got SONA, we’ve got the budget speech, we’ve got these things coming up. How do we mobilize, like we’ve always mobilized, to say enough is enough. Now’s the time”

Pooven Moodley – Interim ED, Oxfam South Africa

The choice to implement a Universal Basic Income is ultimately a choice about the kind of country we want to live in. As we look toward the upcoming national budget, we must decide if we will continue to manage poverty or if we will finally choose to end it. If we believe that every South African deserves a more equal future, then the question is no longer “Can we afford to do this?” but rather, “Can we afford not to?”

Watch the full discussion below