The Impact of South Africa's Welfare System on the Youth: Dependency vs. Empowerment

If it were up to you: Would you choose Social Grants or the opportunity for Employability—whether through Self-Employment or Traditional Employment?

Please take a moment to answer before reading my perspective on this issue.

South Africa’s social welfare system, initially designed as a lifeline for vulnerable communities, is increasingly putting pressure on a dwindling number of taxpayers. The stark reality is this: 7.4 million taxpayers are supporting 28 million beneficiaries. The burden is immense, and the implications for our economic future are dire. Can we afford to continue down this path, or is it time to shift the narrative toward empowerment through job creation?

The SASSA grants system has grown to become the backbone for 45% of South Africa's population, demanding R250 billion annually from taxpayers. This isn’t just a statistic—it’s a wake-up call about the sustainability of relying on such a small group to carry such an enormous financial weight. Among the beneficiaries, 9 million receive Social Relief of Distress (SRD) grants, which were introduced as a temporary measure during the COVID-19 pandemic to provide relief to those who lost income due to lockdowns and economic disruptions. The government is now contemplating converting these grants into a Basic Income Grant (BIG) to support unemployed citizens. This shift, while rooted in compassion, raises critical questions about fostering dependency versus creating opportunities for empowerment.

Earlier this year, during the final State of the Nation Address (SONA) of the sixth administration, President Ramaphosa shared the story of a hypothetical child named Tintswalo, born at the dawn of democracy in 1994. The President used Tintswalo's story to illustrate the impact of government interventions over the past three decades. Tintswalo grew up in a society vastly different from that of her parents, in a country governed by a constitution rooted in equality, the rule of law, and dignity for all citizens.

According to the President, Tintswalo grew up in an RDP house provided by the state, with access to water and electricity, and received free healthcare—benefits that were unimaginable for many South Africans prior to 1994. She attended schools where her parents did not have to pay fees and benefited from a nutritious school feeding programme. Through the National Student Financial Aid Scheme, Tintswalo attended a TVET college and obtained a qualification. Later, she entered the workforce with the help of employment equity and black economic empowerment policies. With the income she earned, she was able to save, start a family, move into a better house, and live a better life.

While this narrative paints a picture of progress, it also underscores the depth of state dependency that has taken root in our society. For millions like Tintswalo, the state has been present at every stage of life—providing housing, healthcare, education, and employment support. However, the debate sparked by the President's story—particularly among young South Africans—centers on whether this model is sustainable or even desirable. Many have argued that the President’s portrayal is out of touch with the reality that, despite these interventions, poverty, unemployment, and inequality remain pervasive.

The outcome of the May elections, where the ruling party lost its majority and led to the formation of a Government of National Unity (GNU), is a clear indication that citizens are increasingly dissatisfied with a welfare system that perpetuates dependency. People are calling for real, transformative change—one that moves beyond survival to genuine empowerment.

While social grants play an undeniably crucial role in reducing poverty, we must ask ourselves: should we not be putting more resources into job creation and entrepreneurship? Can we use the public purse to drive innovation, empower SMEs, and foster public-private partnerships that create jobs and stimulate economic growth, rather than expanding an already strained welfare system?

Social grants are vital, but we need a balanced approach. Dependence on grants should not be the default for millions; rather, opportunities to earn a living and contribute to the economy must become the priority. Investing in people’s potential through skills development, entrepreneurship, and meaningful employment is what will ultimately lift our nation.

The question is clear: Do we continue building a system of dependency, or do we invest in empowering our citizens to be economically active contributors to society?