South Africa’s government has spent R267 billion on social grants, reflecting one of its strongest efforts yet to cushion citizens from deepening economic hardship and rising living costs.
- South Africa allocated R267 billion to social grants during 2024/2025 to mitigate economic hardships.
- Over 28 million individuals, including children and older persons, benefited from expanded social assistance programs.
- The COVID-19 Social Relief Distress grant supported over nine million beneficiaries in addition to traditional grants.
- Economic challenges, including high unemployment and inflation, underline the importance of social welfare measures.
More than 19 million South Africans benefited from the government’s allocation of R267 billion ($14 billion) to social grants during the 2024/2025 financial year, reflecting Pretoria’s sustained efforts to combat poverty and ease living costs.
The funds, disbursed through the South African Social Security Agency (SASSA) in the 2024/2025 financial year, has revealed the state’s heavy reliance on social protection to stabilise households amid sluggish growth and high unemployment.
South Africa’s economy continues to face persistent headwinds, with growth projected at about 1.2% in 2025, according to the South African Reserve Bank.
The country’s unemployment rate remains among the highest in the world at 32.9%, highlighting the structural challenges facing Africa’s most industrialised economy despite government efforts to stimulate recovery through social spending and reforms.
Inflationary pressures, driven by food and energy costs, have strained low-income households, making social grants a vital lifeline for millions.
According to Social Development Minister, Sisisi Tolashe, the R267 billion allocation includes the Covid-19 Social Relief of Distress (SRD) grant, which alone supported more than nine million beneficiaries. Traditional social grants also rose modestly by 0.6%, reaching 19.2 million recipients in March 2025 compared to 19.1 million a year earlier.
Tolashe, addressing Parliament’s Portfolio Committee on Social Development, praised SASSA and the National Development Agency (NDA) for “turning the tide and improving performance” despite fiscal constraints.
“The department and its entities have worked very hard to facilitate and enhance services to the needy and put food on the tables of many vulnerable households, whilst protecting the dignity of children and the elderly,” she said.
The minister added that the social assistance programme saw its “largest expansion yet,” benefiting over 28 million eligible individuals. Of this number, more than 13.1 million children received the Child Support Grant, while 4.1 million older persons benefited from the Old Age Grant.
Government vows reforms amid fraud and service gaps
While touting these milestones, Tolashe acknowledged ongoing challenges in service delivery and fraud prevention.
“I have travelled across the country and listened to customers and SASSA frontline employees who understand the operational changes needed to improve customer experience,” she said, adding that the Integrated Community Outreach Programme aims to extend access across rural communities.
SASSA’s Acting CEO, Brenton Van Vrede, reported progress in tackling corruption and inefficiencies, disclosing that the agency acted on 483 reported fraud and corruption cases, finalising 478.
Economists say the continued expansion of social grants highlights the government’s dependence on welfare spending to offset limited job creation and rising poverty.
Yet with mounting fiscal pressures and a shrinking tax base, analysts warn that South Africa’s long-term challenge lies in balancing compassion with economic sustainability.
