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Financing Options for a Universal Basic Income Guarantee in South Africa

It is within the context of structural unemployment, deep poverty, and inequality that a Universal Basic Income Guarantee (UBIG) is being put forward. There is a deepening unemployment crisis. Despite this, apart from the COVID-19 Social Relief of Distress (SRD) Grant that ended in April 2021, most individuals aged between 18 and 59 in South Africa are currently without any form of state income support, with the main exception being those receiving disability grants. A UBIG would close this gap in the social security system although it is not the only change needed.

This Policy Brief serves as a supplement to an earlier Policy Brief on UBIG published by the IEJ in March 2021 as well as a summary of further research produced for the IEJ by DNA Economics.