South Africa’s grant system
The extensive coverage of South Africa’s grant system provides an illustration of the cash grants systems often present in upper-middle income countries in Sub-Saharan Africa. The South African system includes an Old Age Pension, Disability Grant, Care Dependency Grant, Foster Care Grant, and Child Support Grant. Other less prominent grants in the system include the Grant for Carers of the Aged, War Veterans Grant, and Social Relief of Distress. Together, this system provides cash grants to over 13 million of South Africa’s most vulnerable individuals. The grants reach a significant portion of the population, either directly or indirectly. For the 2007-2008 year, it cost 3.2% of South Africa’s GDP. Specific information about the major grants is provided in the following table.| Name | Year Started | Eligible Population | Coverage | Transfer Size |
|---|---|---|---|---|
| Old Age Pension | 1928 | Elderly (Women over 60 and men over 65 who pass means and asset test) | 2.4 million/5 % of all South Africans (80% of the elderly) | US$ 112 monthly |
| Disability Grant | 1946 | People living with disabilities who pass a means and asset test | 1.3 million/3% of all South Africans | US$ 112 monthly |
| Care Dependency Grant | Not available | Children up to age 18 with disabilities who do not live in an institution and whose household passes a means test | 107,000 | US$ 117 monthly |
| Foster Care Grant | Not available | State-approved foster parents of OVC up to age 18, child must pass a means test | 484,000 | US$ 76 monthly |
| Child Support Grant | 1998 (replaced State Maintenance Grant) | Children through age 14 who live in households that pass a means test | 8.8 million (70% of children) | US$ 27 monthly |
Sources:
European University Institute (2010), Plaatjies (2006), Social Security Administration (2009), South African Social Security Agency (2009), South African Government Services (2009), Streak (2007)
Notes:
Transfer size and coverage is current as of April 2009. 3.2% of GDP cost was for 2007/2008. Information about Grant for Carers of the Aged, War Veterans Grant, and Social Relief of Distress not shown.