While the state is trying to alleviate poverty by proposing the multi-billion-rand basic income grant scheme, the investment community believes it’s an unwise financial decision.
On Sunday, President Cyril Ramaphosa hinted at the government looking into the feasibility of proposing a basic income grant to help South Africa’s poor. Should this proposal come into effect, it would see thousands of unemployed people have some form of financial assistance.
Investors have played their safe card, indicating that they would instead wait for more clarity on the full cost of the fiscus that this new grant would entail. But does South Africa have the finances for this, or is President Cyril Ramaphosa just being financially opportunistic?
Dr Lumkile Mondi,- Senior Economics lecturer, Wits University
Dr Rasigan Maharaj – Chief Director, Institute for Economic Planning on Innovation
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