In South Africa, the issue of extreme inequality and the need for inclusive development have gained prominence. Basic income solutions are being explored to address these challenges. This Working Paper assesses the potential of basic income proposals in South Africa to contribute to inclusive development.
The urgent need for basic income
As South Africa grapples with severe inequality and worsening poverty and unemployment rates, exacerbated by global crises since 2020, basic income is at the forefront of national discussions as a potential solution to ensure inclusive development.
Criteria for progressive basic income
Ortiz et al. (2018) established criteria for progressive basic income proposals, including benefit adequacy, population coverage, and non-regressive financing. These criteria are essential for aligning with ILO standards.
Assessing South African proposals
This Working Paper builds upon Ortiz et al.’s framework to evaluate basic income proposals from South African government and civil society actors. The papers aims to determine how well these proposals meet the criteria for progressive basic income outlined.
The ongoing crisis
Despite a relatively extensive social protection system, South Africa grapples with persistent poverty and inequality. Recent data reveals that over half the population lives below the poverty line, with many in food poverty. These challenges have likely worsened due to the impact of Covid-19 and other global economic shocks.
Addressing unemployment
With an unemployment rate of 42.4% in the first quarter of 2023, a substantial portion of the population is without adequate income. A meager “temporary” grant exists, but policymakers have signaled their intention to introduce permanent basic income support.
Critical considerations for success
The success of this however depends on key factors, such as the value of the transfer, eligibility criteria, financing methods, and potential conditionalities. These elements will determine the initiative’s ability to alleviate poverty and promote inclusive growth.
Design matters
International experts have emphasised that the outcomes of basic income initiatives vary based on their political context, ideological foundation, and design specifics. In South Africa, various proposals with distinct features and rationales have been put forth by government, academia, and civil society.
Assessing proposals for inclusive development
Our goal is to highlight the contested dimensions of basic income in South Africa. We will explore the potential divergent outcomes of these competing visions, particularly concerning poverty alleviation and development.
Theoretical framework
Our approach builds on the premise that basic income can be either progressive or detrimental, depending on design. We set out specific criteria, referring to Ortiz et al. (2018), to assess the progressive potential of South African basic income proposals.
Overview of basic income debates
We provide a brief overview of South Africa’s basic income debates within the context of profound structural challenges, including unemployment, inequality, and poverty.
Key differentiators
We delve into the leading basic income proposals, highlighting key points of divergence, such as value, target population, eligibility verification methods, and financing approaches.
Evaluating progressiveness
Finally, we evaluate these proposals against our criteria to gauge their potential for inclusive development and poverty alleviation. Our review underscores the necessity of basic income in the South African context, emphasizing that the methods of implementation and financing will ultimately determine its success.
Amaarah is a Junior Programme Officer in the Rethinking Economics for Africa project. She is currently studying towards her Masters in Applied Development Economics at Wits University. 
Dr James Musonda is the Senior Researcher on the Just Energy Transition at the IEJ. He is also the Principal Investigator for the Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods project, covering South Africa, Ghana, and Kenya.
Dr Basani Baloyi is a Co-Programme Director at the IEJ. She is a feminist, development economist and activist. She gained her research experience while working on industrial policy issues in academia, at the Centre For Competition, Regulation and Economic Development (CCRED) and Corporate Strategy and Industrial Development (CSID) Unit.
Dr Andrew Bennie is Senior Researcher in Climate Policy and Food Systems at the IEJ. He has extensive background in academic and civil society research, organising, and activism. Andrew has an MA in Development and Environmental Sociology, and a PhD in Sociology on food politics, the agrarian question, and collective action in South Africa, both from the University of the Witwatersrand.
Juhi holds a Bachelor of Arts degree in International Relations and Sociology from Wits University and an Honours degree in Development Studies from the University of Cape Town. Her current research focus is on social care regimes in the South African context, with a particular focus on state responses to Early Childhood Development and Long-Term Care for older persons during the COVID-19 pandemic. Her other research areas include feminist economics, worlds of work and the care economy.
Bandile Ngidi is the Programme Officer for Rethinking Economics for Africa. Bandile has previously worked at the National Minimum Wage Research Initiative and Oxfam South Africa. He holds a Masters in Development Theory and Policy from Wits University. He joined the IEJ in August 2018. Bandile is currently working on incubating the Rethinking Economics for Africa movement (working with students, academics and broader civil society). 
Liso Mdutyana has a BCom in Philosophy and Economics, an Honours in Applied Development Economics, and a Masters in Applied Development Economics from Wits University. His areas of interest include political economy, labour markets, technology and work, and industrial policy. Through his work Liso aims to show the possibility and necessity of economic development that prioritises human wellbeing for everyone.
Joan Stott holds a Bachelor of Business Science in Economics and a Master’s in Economics from Rhodes University. She brings to the IEJ a wealth of experience in public finance management, policy development, institutional capacity-building, and advancing socioeconomic and fiscal justice.
Siyanda Baduza is a Junior Basic Income Researcher at IEJ. He holds a BSc in Economics and Mathematics, an Honours degree in Applied Development Economics, and is currently completing a Master’s degree in Applied Development Economics at the University of the Witwatersrand. Siyanda’s research focuses on the impacts of social grants on wellbeing, with a particular focus on the gendered dynamics of this impact. His interests include applied micro-economics, policy impact evaluation, labour markets, gender economics, and political economy. He is passionate about translating economic research into impactful policy.
Shikwane is a Junior Programme Officer at IEJ focusing on civil society support and global governance in the G20. He has a background in legal compliance, IT contracting and student activism. He holds degrees in Political Studies and International Relations, as well as an LLB, from the University of the Witwatersrand.
Dr Tsega is a Senior Researcher focusing on Women’s Economic Empowerment within the G20. She examines gender equity in economic policy, with expertise in food systems and small enterprise development. She holds a PhD in development studies from the University of the Western Cape, an MA in Development Economics, and degrees in Development Studies and Economics from UNISA and Addis Ababa University.
Nerissa is a G20 Junior Researcher at IEJ, focusing on advancing civil society priorities within the G20 framework. She bridges data, research, and policy to advance inclusive economic frameworks. She is completing a Master’s in Data Science (e-Science) at the University of the Witwatersrand, and holds Honours and Bachelor’s Degrees in International Relations with distinction. She has worked as a Research Fellow at SAIIA and a Visiting Research Fellow at Ipea in Brazil.
Dr Mzwanele is a Senior Researcher supporting South Africa’s G20 Sherpa with policy research. He holds a PhD in Economics from the University of Birmingham and an MSc from the University of the Witwatersrand. His work covers open macroeconomics, trade, finance, and higher education policy, and he has published widely on inequality, unemployment, household debt and higher education curriculum reform.
Kamal is the Project Lead for IEJ’s G20 work, focusing on sovereign debt and development finance. He holds a BComm (Hons) in Applied Development Economics from the University of the Witwatersrand and an Erasmus Mundus Joint Masters in Economic Policies for the Global Transition. He has worked with SCIS, UNCTAD and co-founded Rethinking Economics for Africa.