President Cyril Ramaphosa at NCOP
By Nkosana Khumalo
As South Africa commemorates three decades of democracy, President Cyril Ramaphosa has acknowledged the significant strides made in reducing absolute poverty, while recognising the enduring challenges of inequality. Delivering his annual address to the National Council of Provinces (NCOP) in Cape Town on Thursday, the President reflected on the nation’s progress and the hurdles that remain.
Themed “Dedicating our Efforts Towards Reducing Poverty and Tackling the High Cost of Living,” the address highlighted that in 1993, 71% of South Africans lived in poverty. By 2010, this figure had decreased to 61%, and further to 56% in 2020. Despite these improvements, President Ramaphosa conceded that many South Africans continue to experience poverty and inequality in their daily lives.
“As we work to rebuild the economy, to create more employment and open opportunities for emerging businesses, we continue to assist the poorest and most vulnerable in our society,” he stated. The President emphasised the government’s commitment to the ‘social wage,’ which encompasses social grants, free basic services, healthcare, basic and higher education, social housing, and transport. Excluding debt servicing costs, approximately 60% of the government’s budget is allocated to these social support mechanisms.
President Ramaphosa also highlighted the unity among parties in the Government of National Unity, noting their shared dedication to inclusive economic growth and accelerated job creation. He remarked, “They have committed themselves to reduce poverty and tackle the high cost of living. And, to advance these priorities, the parties to the Government of National Unity have committed themselves to build a capable, ethical and developmental state.”
A crucial component of reducing the cost of living, according to the President, is providing free basic services to indigent households. This initiative has enabled millions to access essential services such as electricity and water. Social grants remain a vital support system for many, particularly children, the elderly, and persons with disabilities. The Social Relief of Distress Grant, introduced during the COVID-19 pandemic, offered relief to up to 11 million unemployed individuals at its peak. Currently, about half of all South African households benefit from social grants.
To ensure affordable access to sufficient food, the government is considering expanding the list of VAT-exempt food items to include more basic products. This measure aims to alleviate the financial burden on low-income households.
In his address, President Ramaphosa also touched on the importance of social inclusion and the fight against hunger. He reiterated South Africa’s commitment to ending poverty, malnutrition, and hunger in line with the National Development Plan. “Since the advent of democracy 30 years ago, South Africa has dedicated great effort and resources towards alleviating poverty and reducing inequality,” he said. The President underscored the role of substantial social protection programmes in lifting many South Africans out of extreme poverty and ensuring that communities meet their basic needs.
Despite these efforts, President Ramaphosa acknowledged that inequality remains a global threat to economic growth and stability. He stressed the need for continued and intensified efforts to address this challenge, both domestically and internationally.
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