INCREASE PENSION, CHILD SUPPORT GRANTS
PRESIDENT Cyril Ramaphosa announced on Sunday that the social relief of distress grant (SRD) of R350 would be reinstated until March.
It expired in January after more than R16 billion was paid to about 6.5 million monthly recipients since May last year.
The announcement was made in the aftermath of the looting and violence that gripped KwaZulu-Natal and Gauteng two weeks ago.
Looted businesses and shopping malls are trying to rebuild. Some have re-opened this week, however many are yet to do so and this raises concerns about food supply and expected food price hikes.
Agricultural economist Dawie Maree had told Independent Media that with the limited food supply and limited availability, prices would increase but added that this would not be a long-term effect on food price inflation.
“This will of course have an impact on the consumer. The options of where you can buy as a consumer will be limited because the looted buildings will have to be repaired and declared safe,” Maree said.
With that in mind, many would have to incur extra travel costs to supermarkets they would not have ordinarily bought from as they were more expensive than their usual shops that were since looted.
This places a heavier financial burden on a household. In this context the SRD grant would have to be assessed. It could be argued that the government was still underestimating the extent and depth of the economic crisis at household level as well as the frustration and the anger of people.
Civil society initiative, the Pietermaritzburg Economic Justice & Dignity Group conducted a Household Affordability Index for July and focused on women in low-income households in Durban, Joburg and Cape Town. Based on its findings, it stated that the relief measures Ramaphosa announced would not be enough to prevent hunger and quell civil disorder.
Instead, it suggested increasing the relief amount as well as increasing the old age grant and child support grant to enable a family to survive and to prevent hunger and unrest.
This is a sensible and immediate solution.