South Africa is full of myths about Universal Basic Income, that it makes people lazy, that it’s unaffordable, or that it’s no different from existing grants. The truth is very different.
UBI is not charity, it’s justice.
Let’s explore some common myths and the facts that dispel them
MYTH 1: “Universal Basic Income will make people lazy; they’ll stop looking for work.”
FACT: Universal Basic Income does not make people lazy; it gives them the freedom to seek decent, meaningful work.
More than half of South Africa’s youth don’t have enough money to cover the costs of just looking for work.
Most people want to contribute. Global studies show that basic income helps people find jobs, start businesses, study, and escape exploitation. Poverty kills potential, UBI unlocks it.
Read more on IEJ’s Fact Sheet #11: Why work-seeking conditions don’t work
MYTH 2: “Only the poor should get income support. Universal Basic Income is a waste on people who don’t need it.”
FACT: Targeted systems almost always exclude the very people who need support the most.
Means-testing and digital filters create administrative burdens and high exclusion errors. Universality is simpler, fairer, more cost-effective in the long run, and avoids the high error rates of current systems.
Basic income should be financed by the rich, but available to all.
See Fact Sheet #12: The problem with poverty targeting
MYTH 3: “South Africa cannot afford a UBI.”
FACT: We can afford Universal Basic Income, we actually cannot afford not to! At R1 634/month (the current food poverty line), the gross cost would be around R342 billion. But the net cost is far lower after tax returns and economic growth. Phased in and funded through fair taxes, UBI is achievable and urgent.
Exclusion, poverty, and unemployment are already costing us more.
Learn how South Africa can pay for it in Fact Sheet #6
MYTH 4: “People already get the SRD grant, why do we need UBI?”
FACT: The SRD grant is not universal and it’s failing millions. R370 a month is nowhere near enough to survive.
Only about one in two people who need assistance receive the SRD grant, and nine out of ten exclusions are wrong. UBI removes red tape and ensures no one is left behind.
A UBI would start at a level that meets everyone’s most basic, essential needs. For example, a decent UBI could begin at around R796 per month (the current national food-poverty line), the amount people need just to afford food, and would increase over time as the cost of living and food prices rise. (Learn more >>LINK TO SIYANDA VIDEO BLOG)
See Fact Sheet #12 on exclusion from SRD
MYTH 5: “UBI will hurt the economy.”
FACT: UBI will boost the economy.
It unlocks local demand, helps people invest in small businesses, improves food security, and increases resilience in times of crisis.
To learn about what UBI means for the economy, see Fact Sheet #7
MYTH 6: “UBI is just another social grant.”
FACT: UBI is a new paradigm, a new social contract.
It’s not about handouts or welfare. It’s about sharing South Africa’s wealth more fairly, recognising unpaid work, and ensuring that everyone has access to the basics, no matter who they are.
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.