Black Sash welcomes grant extension, calls for permanent basic income policy

As South Africa trudges through a landscape marked by significant unemployment rates and social inequality, Black Sash has welcomed the the extension of the SRD grant, which comes as a lifeline for millions of unemployed South Africans.

However, this has also underscored the pressing need for innovative and sustainable fiscal strategies to ensure that basic needs are not only met but secured in the long term.

Black Sash, the civil society group fighting for the rights of social grants recipients, has welcomed Minister of Finance, Enoch Godongwana's extension of the social distress grant for the next 12 months. On Wednesday, the Minister extended the grant for the next 12 months following widespread speculation over its future.

In March, the minister announced that the SRD grant has been extended until March 2026, with the minister revealing that he had allocated R35.2 billion for the continuation of the crucial financial support.

The latest update has now allowed for the grant to go on for another year until March 2027.

The minister made the announcement during the 2025 Medium Term Budget Policy Statement (MTBS) on Wednesday. The SRD grant was first introduced to South Africans at the height of the Covid-19 pandemic.

“The Covid-19 social relief of distress grant will be extended for another year, to March 2027, while proposals are finalised to link the working-age population to skills development and employment programmes.”

Speaking on behalf of Black Sash, Oliver Meth, said despite the extension of the grant for another year, the grant is not enough for the millions of young South Africans who find the going getting tough due to high levels of unemployment.

“Black Sash notes the announcement by finance minister, Enoch Godongwana, during his medium term budget policy statement that the social relief of distress grant will be extended for another year.

“While the extension provides temporary relief to millions of South Africans facing unemployment, hunger, and economic hardship, it is deeply concerning that government continue to treat the SRD grant as a temporary measure– with no clear plan for a permanent basic income policy,” Black Sash.

Godongwana said even though the country’s most pressing challenge remains accelerating economic growth to create jobs and reduce poverty at the scale required, there is optimism as the country seeks to implement pro-poor policies in light of the projected 1.8% economic growth between 2026 and 2028.

“Drawing lessons from the 2025 budget process, we have engaged extensively to build consensus on how to achieve faster growth and leverage public finances to attract the investment needed to create jobs and improve life for all,” he said.