The study by Master of Social Science in Development Studies graduate, Ms Nthuseng Nakin, offers insight into the transformative role of the Social Relief of Distress Grant (SRD Grant) within the vibrant community of Cato Manor, Durban, an area marked by economic challenges and social disparities.

‘I explored the impact of the SRD Grant in Cato Manor because it is a working-class neighbourhood that is highly populated with a high rate of unemployment and crime, with a small part comprising formal housing for middle-income families and the majority comprising informal, housing for mainly lower-income families.’

There are many female-headed households in the area that suffer from substandard housing, inadequate infrastructure, and a lack of basic social services such as proper sanitation, waste disposal, and electricity. Most households survive on social grants provided by the government.

The findings showed that residents confronted significant challenges in accessing the SRD Grant; some did not know how to apply for it, while others did not have smartphones or data to apply. Some who managed to travel to government offices found that they were fraudulently registered for UIF (the Unemployment Insurance Fund) or were told that they had other sources of income that they knew nothing about. Those who qualified waited a long time to receive it.

Nakin said that, while some respondents felt that the grant did not did not make a difference as they were already deep in debt, a few were able to start businesses and support their households. She advocates for a shift towards a Basic Income Grant (BIG) for sustainable poverty alleviation.

‘The SRD grant was a temporary programme introduced to address the dire financial states of communities during the COVID-19 pandemic. It successfully reduced poverty and inequality in the short term. A BIG would be a permanent programme providing a monthly stipend to all citizens, regardless of their income or employment status. While the SRD Grant showed positive short-term effects, a BIG can have a more profound and sustained impact on poverty and inequality. It could also stimulate economic activity and foster social cohesion by providing a stable foundation for all citizens,’ said Nakin.

Nakin’s research emphasises the role of income support in poverty alleviation, and advocates for holistic social relief measures encompassing income support, education, healthcare, and employment opportunities. She highlighted the need to involve communities in policy design and to implement long-term strategies.

Extending heartfelt thanks to her supervisor Professor Shauna Mottiar, colleagues, friends, and family who supported her, Nakin said that when people receive assistance, they can achieve wondrous things.

‘I was impressed by the resourcefulness of some of the residents of Cato Manor. I did not expect that people could save and start a business with the grant money. I thought that the grant was enough for basic necessities, but they proved me wrong.

I guess anything is possible with a good business mind!’

Words: Rakshika Sibran

Photograph: Sethu Dlamini