R350 distress grant extended for another year- 11 February 2022

Office of the Premier 2022/02/10 - 22:00



Qaqambile Mdledle

President Cyril Ramaphosa has announced the extension of the R350 Special COVID-19 Social Relief of Distress (SRD) Grant for another year, until March 2023.

Ramaphosa noted that this extension will put additional strain on the fiscus, however, he said that the grant was necessary as the government consider more permanent support measures.

"A fiscal crisis would hurt the poor worst of all through the deterioration of the basic services on which they rely," the President said in his State of the Nation Address on Thursday.

The special grant has provided support to more than 10 million unemployed people who were most vulnerable to the impact of the COVID-19 pandemic.

Some people used that money to start businesses. The President noted grant recipient Thando Makhubu from Soweto who saved her R350 grant for seven months to open an ice-cream store that now employs four people.

Another is Lindokuhle Msomi, an unemployed TV producer from KwaMashu Hostel, who saved the grant for nine months to start a fast-food stall and to support his family.

National state of disaster

Over the past two years, COVID-19 has put two million South Africans out of work and nearly 100 000 people have died.

In 2021, government has focused on accelerating vaccine rollout, however, the country is ready to enter a new phase in managing the pandemic.

"It is our intention to end the national state of disaster as soon as we have finalised other measures under the National Health Act and other legislation to contain the pandemic," said President Ramaphosa. 

"Our approach has been informed throughout by the best available scientific evidence, and we have stood out both for the quality of our scientists and for their involvement in every step of our response.

"So far, we have administered 30 million doses of COVID-19 vaccines. Consequently, nearly 42% of all adults and 60% of everyone over 50 is fully vaccinated."

In his speech, Ramaphosa emphasized the importance of vaccination as the first and most powerful tool we have against COVID-19.

"Vaccination is by far the most important way to protect us against severe illness, hospitalisation or death in the event we contract the virus.

"If we all get vaccinated, continue to observe basic health measures and remain ever vigilant, we will be able to get on with our lives even with the virus in our midst," said the president.

Expanding public and social employment

Ramaphosa said the expansion of public and social employment is meant to ensure that no one is left behind.

"We are calling on the private sector to support these measures – and, wherever possible, to drop experience as a hiring requirement – to give as many young people as possible their first job."

Through the Presidential Employment Stimulus programmes, the Department of Home Affairs is set to recruit 10 000 unemployed young people for the digitisation of paper records, enhancing their skills and contributing to the modernisation of citizen services.

The first two phases of the Presidential Employment Stimulus programmes launched in October 2020 has created over 850 000 opportunities. More than 80 % of participants were young people, and over 60% were women.

A revitalised National Youth Service will recruit its first cohort of 50 000 young people during the next year. This will create opportunities for young people to contribute to their communities, develop their skills and grow their employability.

The Department of Higher Education and Training, for its part, will place 10 000 unemployed TVET graduates in workplaces from April 2022.

The Social Employment Fund will create a further 50 000 work opportunities using the capability of organisations beyond government, in areas such as urban agriculture, early childhood development, public art and tackling gender-based violence.

To encourage hiring by smaller businesses, the National Treasury will be increasing the value and expanding the criteria for participation in the Employment Tax Incentive.

"For several years, this has been an effective way to encourage companies to hire new work seekers. The changes to the incentive will make it easier for small businesses in particular to hire young people."

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