In his latest address to the National Council of Provinces (NCOP), President Cyril Ramaphosa unveiled a strategic proposal aimed at addressing poverty and improving access to affordable food for South Africans. Among the key measures being considered by the government is the expansion of food items exempt from Value Added Tax (VAT). This initiative is seen as a crucial step in making essential food products more accessible to all South Africans, particularly the poor and vulnerable communities who are struggling with the rising cost of living. The proposal is a part of broader efforts by the government to alleviate poverty and support the most disadvantaged groups in society.
Ramaphosa took the opportunity to reflect on South Africa’s progress in reducing poverty over the past few decades. In 1993, 71% of South Africans lived in poverty, but by 2010, that figure had dropped to 61%, and by 2020, it stood at 56%. However, despite this progress, the president acknowledged that poverty and inequality remain persistent challenges in South Africa. “People’s lived experiences confirm the persistence of poverty and inequality,” Ramaphosa said, emphasizing that while economic rebuilding, job creation, and new business opportunities are central to the government’s efforts, it remains crucial to continue providing support to those in need.
A significant part of the government’s strategy to combat poverty is the “social wage,” which includes various forms of support such as social grants, free basic services, healthcare, education, social housing, and transport. Ramaphosa revealed that when debt servicing costs are excluded, approximately 60% of the national budget is allocated to these social programs. This commitment to social spending underscores the government’s dedication to improving the lives of South Africa’s poorest citizens and ensuring they have access to basic services that are fundamental for survival and well-being.
Ramaphosa also highlighted the government’s efforts to tackle the high cost of living through the provision of a free basic minimum of services to indigent households. He noted that this initiative has allowed millions of South Africans to access essential services such as water, electricity, and sanitation. Social grants, particularly those aimed at children, the elderly, and people with disabilities, continue to provide crucial financial support to millions of households. He also pointed out the role that the Special Relief of Distress (SRD) grant, introduced during the COVID-19 pandemic, has played in supporting the unemployed, with as many as 11 million people benefiting from this initiative at its peak.
Another key focus of Ramaphosa’s speech was on agricultural expansion, particularly the need for effective land redistribution and support for beneficiaries to farm the land. The president emphasized that increasing agricultural production is critical for food security and economic growth, particularly in rural areas. More effective land reform policies will not only empower small farmers but also contribute to reducing poverty in these communities. Ramaphosa’s comments reflect a long-term vision of building a more self-sufficient and sustainable agricultural sector.
Finally, Ramaphosa addressed the role of spaza shops in South Africa’s informal economy, acknowledging that many South Africans rely on these outlets for food and other basic goods. He noted the importance of spaza shops in township and rural economies, as they provide convenience and affordability to local residents. However, he also pointed out the growing concerns over food safety, following recent incidents of foodborne illnesses linked to spaza shops. This has led the government to increase oversight of these businesses to ensure that food sold in informal markets meets health and safety standards, which will be a key part of the broader effort to protect consumers while promoting economic growth in underserved communities.
