Government to continue to invest in the poorest and most vulnerable – President

As the country works towards rebuilding the economy, President Cyril Ramaphosa has in his weekly newsletter reaffirmed government’s commitment to continue to invest in the poorest and most vulnerable in society.

In the Spirit of Mandela Month, the President said the country celebrates the life and work of Nelson Mandela by recommitting to build the society to which he dedicated his life.

Through its substantial social protection programmes, President Ramaphosa highlights that government has provided vital support to millions of South Africans, lifting many out of extreme poverty and meeting many of their basic needs.

“In everything we do this month to honour the founding father of our nation, let us recall his observation that, “while poverty persists, there is no true freedom”.

“As we work to rebuild the economy, to create more employment and open opportunities for emerging businesses, we will continue to invest in the poorest and most vulnerable in our society. The funds we spend on social protection are not wasted; they make a real difference in people’s lives, both now and into the future,” the President said.

President Ramaphosa highlighted that Social protection in South Africa goes far beyond the provision of social grants for the elderly, children, people with disabilities, military veterans, and the Unemployment Insurance Fund, which provides income support for unemployed workers.

He said that it encompasses all support provided to South Africans, mainly the poor, through what has become known as the ‘social wage’. This includes the provision of free basic services, health care, basic education, higher education, social housing and transport.

The President said that around 60% of government’s budget is spent on the social wage when debt-servicing costs are excluded.

Government is currently funding free basic services to just over 11 million households, which enables poor people to access electricity, water, sanitation, and other services.

A recent World Bank assessment noted that South Africa’s grant and social assistance systems play a critical role in mitigating poverty. The report found our systems and programmes to be “effective, well-targeted and providing sizeable benefits to the poorest households”.

“The provision of comprehensive social protection will not, on its own, end poverty or inequality in our society. To really end poverty, we need an economy that grows, attracts investment, creates jobs and allows new companies to emerge and thrive,” President Ramaphosa said.

The President called for government’s policies and programmes to work together to build an inclusive economy and provide social protection to the poor and unemployed.

President Ramaphosa acknowledged that the expansion of social protection can only take place at the pace and scale the fiscus can afford, however government is focused on growing the economy and developing sustainable solutions to support pro-poor spending.

“A growing economy provides the funds we need to strengthen our social protection measures, while the support that poor people receive, especially in access to education and health, enables them to better contribute to the economy.

“Through an integrated and comprehensive system of social support, we are not only meeting our collective responsibility to the most vulnerable in society. We are also investing in our country’s future,” he said.