South Africa is grappling with high unemployment and poverty rates that significantly affect its population, especially children. Approximately 40% of the working-age population is unemployed, and over 55% live below the poverty line. This socio-economic crisis has profound implications for social stability and public health. Among the initiatives to address this issue, the South African government provides a Child Support Grant to assist families in need, though its efficacy remains under scrutiny due to its inadequacy in meeting basic living costs.
The Child Support Grant provides R530 per month per child. However, this amount falls significantly below the food poverty line of R760, which defines the minimum required for basic nutritional needs. Families like that of Sarah Hlongwane, who supports 12 members, find it challenging to manage essential expenses such as food, school transport, and housing.
Key Challenges
Shortfall: Grant amount is 30% less than the food poverty line.
Rising Costs: Essential commodities and services continue to rise, increasing financial strain.
Children’s Needs: Basic nutrition, education, and healthcare remain unmet for many beneficiaries.
Proposed Measures to Alleviate Poverty
Expansion of VAT Exemptions
The Government of National Unity (GNU) suggests exempting more essential food items from Value-Added Tax (VAT) to reduce the cost of living.
Benefits:
Decreases the cost of basic goods.
Enhances purchasing power for low-income families.
Capping Administered Prices
Economic analysts, including Mervyn Abrahams, recommend capping prices on essentials like:
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