Targeting social assistance to those deemed most in need is often seen as a fair way to allocate resources. However, the narrow targeting of South Africa’s Social Relief of Distress (SRD) grant reveals significant flaws, resulting in the widespread exclusion of eligible individuals. This factsheet, published by the IEJ, delves into how and why these exclusions occur and their impact on vulnerable communities.
What is the SRD Grant?
The SRD grant, introduced in May 2020, is the only social assistance available to working-age able-bodied individuals. Initially valued at R350 (60% of the then-food poverty line), the grant’s eligibility criteria have since tightened, introducing a formal means test currently set below inflation-adjusted poverty thresholds.
Alarming Exclusion Rates
Research conducted by the IEJ uncovered an average monthly exclusion rate of 89.7% among eligible applicants surveyed. Key barriers include:
- Means testing flaws: Automated systems wrongly categorize household transfers, child support, or loans as income.
- Digital and linguistic challenges: Online applications in English exclude those without digital access or proficiency.
- Administrative failures: Approved grants frequently remain unpaid or delayed.
Vulnerable Groups Most at Risk
Those disproportionately excluded include women, rural residents, and individuals lacking formal identification or access to financial and digital services. Despite being the intended beneficiaries, these groups face significant hurdles due to systemic inequities.
A Call for Change
The IEJ advocates for a universal basic income grant to address the limitations and pitfalls of poverty-targeting systems. Policy recommendations include:
- Eliminating restrictive eligibility criteria.
- Improving transparency in verification processes.
- Offering non-digital application alternatives.
Learn More
Explore the full findings and recommendations in the IEJ’s UBIG Factsheet 12.
Other factsheets in the series include:
- Why does South Africa need a Universal Basic Income Guarantee?
- No one left behind: Why universal basic income makes more sense than targeted grants
- Jobs versus Grants: Are employment and basic income a policy trade-off?
- How a UBIG can support healthier kids, happier adults, and lifelong learning
- How a UBIG can advance gender justice and social cohesion
- Not just a handout: How a UBIG gives people the power to prosper
- “But how will we pay for it?” Financing a UBIG
- Modelling fiscal pathways to a basic income
- Work-seeking Conditionality is Just Bad Policy: Why a basic income should have no strings attached
- A True Safety Net: How a UBIG Can Support a Just Energy Transition
- Priority number one: How a UBIG can help defeat hunger
- The pitfalls of poverty targeting: The drivers and impacts of widespread exclusion from the SRD grant
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.