Social financial grants [SFGs] and poverty eradication in South Africa

Mohamad Zreik and Badar Alam Iqbal

Development Southern Africa, 2025, vol. 42, issue 1, 107-118

Abstract: This study examines the role of Social Financial Grants (SFGs) in poverty reduction in South Africa, focusing on their impact on economic stability and income inequality. Using a structured model, it explores both the direct and mediated effects of SFGs on poverty alleviation. Results indicate that SFGs significantly reduce poverty by decreasing income inequality and enhancing economic stability, key factors in a highly unequal society. Effective administration and expansion of SFGs could further benefit vulnerable populations. The study notes limitations, such as the need for longitudinal data to assess sustainability and attention to regional disparities. Recommendations include integrating SFGs with job training, improving distribution, and reducing stigma. Implications extend beyond South Africa, offering insights for other developing nations. Future research should investigate additional mediators and conduct comparative regional studies to optimise social grant programmes globally.

Date: 2025
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DOI: 10.1080/0376835X.2024.2434222

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