The Social Security system in South Africa forms part of government’s strategy to fight the triple challenge of poverty, inequality and unemployment.
What are the challenges of Social Security in South Africa?
In 2000 over 3.5 million South Africans received some kind of social grant. The transformation of social security in South Africa since 1994 has been underpinned by a policy to alleviate poverty. The Department of Social Development has introduced a framework designed to meet the social security needs of citizens in the country.
Various challenges in South Africa include the high youth unemployment rates and poverty. Statistics have shown that more than 20% of the population lives below the poverty line.
There are numerous gaps in the system too as a large portion of the population receive no state support and have very few opportunities to further themselves. The high rate of inequality in the country (South Africa has a Gini co-efficient of 0.65) is also a major challenge that is being tackled by the social security system.
In 2005, the government introduced the South African Social Security Agency (SASSA) with the aim of addressing challenges of social security in South Africa. SASSA has introduced a number of operations in order to improve access to information about social security, among other changes designed to improve services to the country’s citizens.
In 2008, the Department of Social Development produced a Discussion Document containing widespread social security reform proposals.
The Core Business of South African Social Security Agency (SASSA):
To administer, finance and pay social security transfers
Develop and implement policies for efficient and effective social assistance benefits administration system
Deliver innovative and cost-effective services to beneficiaries and potential beneficiaries through multiple access channels
Pay the right grant to the right person at the right time and place.