An initiative called the Unconditional Cash Transfer Project has shown the positive impact of giving cash grants to unemployed young people. Archive photo: Chris Gilili
By Shaun Smillie first published on GroundUp: IN SUMMARY
- Cash Transfer Project:
- 100 unemployed TVET college graduates in KwaZulu-Natal received R2,000 per month for two years (Oct 2022 – Sept 2024).
- The Unconditional Cash Transfer Project is funded by the German Catholic Bishops’ Organisation (Misereor) and implemented by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD).
- Project Aim:
- To see if giving R2,000 monthly to unemployed graduates would help them create sustainable livelihoods.
- Positive Results:
- By March 2024, 27% of participants started income-generating activities.
- Examples of Success:
- Nqobile Zuma: Used the grant for farming, growing potatoes, spinach, and onions on land near her home.
- Ntokozo Mkhize: Started a perfume-selling business using her grant.
- Challenges:
- Some participants, like Zuma, faced difficulties (e.g., a failed coding business).
- Many participants used their grant to help their families, including paying for school expenses, job applications, and renovating homes.
- Project Benefits:
- Helped participants and their families financially.
- 73% of families reported no longer running out of money during the month.
- Universal Grant Advocacy:
- PMBEJD and SPI (Social Policy Initiative) advocate for a universal monthly grant in South Africa to boost the economy and create jobs.
Mervyn Abrahams (PMBEJD Programme Coordinator):
- “We need to rethink [universal grants] as a way of making an investment in the economy, through investment in people.”
- “That’s indicative of there being so many scams,” explaining initial participant scepticism.
- “It is quite an expensive occupation [looking for work] because you need data, airtime, transport money, and a nice shirt for interviews.”
- “There’s a whole range of things we need to look at, like the kinds of benefits that we can see, and even the benefits that we can’t see.”
- “Then we can present it to policy makers for consideration as another tool towards expanding economic activity in the country.”
Ntokozo Mkhize: “I advertise through my phone on WhatsApp,” about her perfume-selling business.
Isobel Frye (Executive Director of Social Policy Initiative):
- “A Finnish pilot found that people were mentally better off; they were happier,” explaining benefits of universal grants.
- The SPI’s research suggests a R1,500 universal grant could create 2 million jobs and grow South Africa’s economy by 5.2% annually.
