Neil Coleman
Presentation to South African Society for Parental and Enteral Nutrition
25 October 2023
Introduction
Basic income and inclusive development in South Africa unpacks South Africa contemplating the implementation of a Universal Basic Income Guarantee (UBIG) to counteract its severe crises of hunger, poverty, unemployment, and inequality. This imperative reflects the nation’s commitment to fostering inclusive development in the face of complex challenges.
Overview
As the nation stands at this critical juncture, a comprehensive understanding of the landscape is vital. South Africa’s profound crises, deeply rooted in hunger, poverty, unemployment, and inequality, demand urgent and innovative interventions. The proposed Universal Basic Income Guarantee (UBIG) serves as a beacon of hope, aiming to address not only immediate concerns but also the structural issues that have perpetuated these challenges.
The Political Economy and Urgency
The urgency for a UBIG is underscored by the depth of South Africa’s crises, where over a quarter of the population faces hunger, more than half live in poverty, and unemployment rates exceed 42%. The nation’s status as the most unequal globally further emphasizes the necessity for swift and impactful interventions.
The SRD Grant: A Window of Opportunity
The introduction of the Social Relief of Distress (SRD) grant during the COVID-19 era has been a crucial step. Despite political contestation and fiscal pressures, the SRD grant has provided emergency cash transfers, offering tangible relief and opening a political pathway towards a more permanent Basic Income.
Navigating Political Contestation
The political landscape is complex, with divergent views on the future of the SRD grant. While Treasury seeks to terminate it, the President and the Department of Social Development advocate for its improvement and transition into a Basic Income Grant. This political contestation occurs against the backdrop of the 2024 elections, adding an additional layer of complexity.
Austerity and the Path Forward
The austerity framework that South Africa has operated under for the past decade poses significant challenges. However, it is acknowledged that a progressive Basic Income Grant is not possible within the constraints of austerity. Financing options, including wealth taxation and the reorientation towards inclusive economic growth, are key to the success of such a transformative initiative.
The Macroeconomic Impact and Future Scenarios
Beyond being a fiscal expense, a Basic Income Grant can serve as a catalyst for economic activity and social well-being. Different scenarios, ranging from low to high ambition, model the potential impact of a Basic Income in addressing South Africa’s socio-economic challenges within a broader policy framework.
Conclusion
In conclusion, the journey towards a Universal Basic Income Guarantee in South Africa is not just a response to immediate crises but a transformative pursuit of inclusive development. Navigating political complexities, fiscal challenges, and envisioning a future where the most vulnerable are uplifted, South Africa’s commitment to change is a beacon of hope for a more equitable and prosperous nation.
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.