Challenge:

South Africa’s current welfare system, though extensive, is rooted in outdated and flawed assumptions. It operates under the belief that:

1. Unemployment is temporary — despite South Africa facing mass, structural unemployment, particularly among the youth.

2. Men are the primary breadwinners — leaving significant gaps in support, especially for young Black men, who often find themselves excluded from the grant system.

As a result, while pensioners and mothers of young children receive some support, many young, unemployed individuals — particularly Black men — are left in economic precarity, marginalised both socially and financially.

With growing calls for a Universal Basic Income Grant (UBIG) to either supplement or replace existing welfare provisions, the need for a more inclusive and equitable system has never been more urgent.

Action:

The NSI is actively engaging in research and policy development to reform South Africa’s welfare regime. Leveraging international best practices and comparative studies, our work focuses on:

• Rethinking the welfare model — analysing global UBIG implementations to tailor a system suitable for South Africa’s unique socio-economic landscape.

• Designing inclusive coverage — developing policy options that extend support to those historically excluded, especially young, unemployed individuals.

• Ensuring institutional efficiency and affordability — crafting models that balance expanded coverage with long-term fiscal sustainability.

• Facilitating public discourse — through policy briefs, seminars, and collaborations with government and civil society, NSI is fostering informed debate on the future of welfare in South Africa.

Impact:

A reformed welfare system, informed by our research, could significantly reshape South Africa’s social and economic fabric by:

• Providing economic security to millions currently excluded from state support, particularly young Black men trapped in structural unemployment.

• Reducing poverty and inequality, fostering social cohesion and empowering marginalised communities.

• Building a sustainable welfare model that is both inclusive and economically viable, ensuring long-term support for vulnerable populations.

• Driving national dialogue on welfare reform, positioning South Africa as a leader in innovative, equitable social policy.

Ultimately, our work aims to create a welfare system that recognises and addresses the realities of South Africa’s structural unemployment, fostering a more just and inclusive society.