The triple challenges of poverty, inequality, and unemployment are worsening in SA

People for grant outside the Pinetown post office. Picture: File.

People for grant outside the Pinetown post office. Picture: File.

Published Dec 13, 2022

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NOXOLO MIYA

[email protected]

Johannesburg - The triple challenges of poverty, inequality, and unemployment continue to rise in South Africa due to the unfavourable economic climate.

This is according to the Department of Social Development, which launched the Expert Panel Report on Basic Income Support in Kempton Park, Gauteng, on Monday.

The research was commissioned by the department in collaboration with the International Labour Organization (ILO).

Experts and participants are expected to deliberate on the findings and the recommendations of the report.

Among the key thematic areas for discussion by the panellists are the social outcomes of the Social Relief of Distress grant, and its economic and fiscal considerations.

The department has highlighted that poverty, inequality, and unemployment continue to rise due to the unfavourable economic climate, which is informed, among others, by the recent COVID-19 pandemic.

"As the triple challenge (of poverty, inequality, and unemployment) persists, it is widely accepted that social protection is an important component of development, for both human and economic development."

"The rising rate of unemployment, together with the high uptake of the COVID-19 Social Relief of Distress (SRD) grant, are evidence that there is a gap in the provision of social protection for the working age group of 18 to 59 years."

"This necessitated the Department of Social Development to conduct studies to inform a proposal to extend social assistance for this vulnerable group," the department said in a statement.

The department said the panel report affirmed that income poverty in South Africa was pervasive with more than half of households living in poverty; and that the COVID-19 SRD was critical to sustaining their livelihoods.

Furthermore, the department said the impact of the SRD on poverty and inequality was potentially more significant than previously understood. This was despite the relatively modest nature of the temporary relief.

At the end of the panel's programme, it is expected that the report will be handed over to the Department of Social Development by the International Labour Organisation.

Related Topics:

basic income grant