President Cyril Ramaphosa has outlined an ambitious plan to combat poverty in South Africa, emphasizing the importance of expanding access to basic necessities and creating opportunities for vulnerable groups. Speaking during a session of the National Council of Provinces (NCOP) on November 28, 2024, Ramaphosa highlighted the government’s consideration of broadening the range of food items exempted from Value-Added Tax (VAT) as part of a comprehensive strategy to make food more affordable for all South Africans.
Ramaphosa reflected on the progress made in poverty reduction over the past few decades, noting that the poverty rate had decreased from 71% in 1993 to 56% in 2020. However, he acknowledged the persistence of poverty and inequality, particularly in the face of challenges like unemployment and economic stagnation. “As we work to rebuild the economy and open opportunities for emerging businesses, we continue to assist the poorest and most vulnerable,” Ramaphosa stated, emphasizing the need for both short-term relief and long-term structural reforms.
The president also highlighted the significance of South Africa’s social wage—a broad array of government-provided services such as social grants, free basic services, and healthcare. He pointed out that around 60% of the government’s budget, excluding debt servicing costs, is dedicated to these essential services, benefiting millions of South Africans. Ramaphosa underscored the vital role of social grants, which support vulnerable groups, including children, the elderly, and people with disabilities, with the SRD grant introduced during the COVID-19 pandemic providing vital relief to the unemployed.
Additionally, Ramaphosa addressed the need to boost South Africa’s agricultural output through more effective land redistribution and support for emerging farmers. He also acknowledged the role of spaza shops and informal traders in supplying food to many communities, especially in townships and rural areas. While these outlets provide essential services, the president noted concerns about food safety risks following incidents of foodborne illnesses, underlining the importance of ensuring that these businesses meet proper standards to protect consumers.
