From The Guardian, June 8:
The ruling ANC is on a pioneering path to transform the Covid grant into a scheme that aims to combat poverty
South Africa is facing the most dramatic political shift since the end of apartheid after the African National Congress lost its majority in the general election of 29 May. Weeks of difficult negotiations between the ANC and its rivals on how best to form a governing coalition are expected.
One commitment that unites most parties – including the incumbent ANC and its biggest rival, the Democratic Alliance – is to maintain or increase income support for adults, which includes monthly Covid payments to the poorest households.But the ANC has gone one step further. A week before the election, it released a statement deepening its commitment to finalising a policy to transform the state’s Covid grant into a universal basic income (UBI) within two years of forming a new administration. If implemented, this would make South Africa the first country in the world to work towards a policy of paying all people between the ages of 18 and 59 a regular grant, with no condition to be seeking work.
At the moment, South Africa’s Social Relief of Distress grant (SRD) is paid to people who have less money entering their account each month than the individual food poverty line – or the minimum needed to afford food with enough calories to survive.
The ANC has committed to expanding eligibility to all adults by progressively increasing the means-test threshold. At present, the means-testing is based on the 2021 poverty line, which has increased, but the means-test threshold has not, meaning some people in food poverty do not qualify....
....MUCH MORE
I haven't even thought of the South African economy in years, probably since the drought and "Day zero" in 2018, but as a way to focus our thoughts, here is the last five years versus the dollar. From TradingView. Worth just over a U.S. nickel, last 5.40 cents:
