and came on the eve of the SRD grant lapsing at the end of January . The grants lifeline, currently benefiting nearly seven million people, will be cut even though South Africa is still in the thick of a second wave of Covid-19 infection and deaths, as well as a level three lockdown under the State of Disaster that has once again shuttered many parts of the economy and caused a loss of further jobs and livelihoods.
This is the context for intense pressure now on the government and may explain reports that have emerged in the past 24 hours of divisions within the ANC and within government on whether or not to extend grants as well as over a basic income grant .
At the recent ANC lekgotla, for example, there are reported to have been deep differences in approach between the Covid Commission and the Economic Transformation Commission, led by Finance Minister Mboweni and Enoch Godongwana, which is resolutely against an extension. It is also reported that the lines of this division also play out in the same way over the proposed BIG, for which there is growing support in the DSD, National Planning Commission and the ANC’s social transformation committee. It is believed that detailed costings have been done on all these measures showing that they are affordable and would help South Africa weather the Covid storm socially and economically.
It seems inevitable that in coming days and weeks these divisions will come to a head and that the president in particular will have to take a stand in favour of one side or another. The issue has been on the agenda at Nedlac, the Cabinet is currently in its annual lekgotla and this weekend there is a national coronavirus command council where the issue will be raised.