Updated on November 16, 2024
The South African Social Security Agency (SASSA) continued to play a critical role in supporting the country’s vulnerable populations through social grants in the 2023-24 financial year. Amid ongoing economic challenges and an increasing reliance on social assistance, SASSA’s work remains vital for poverty alleviation. Here’s an in-depth look at the statistics, trends, and significant outcomes as reported in the 2023-24 Annual Report.
Overview of Social Grant Reach and Growth in 2023-2024
SASSA recorded a total of 19,137,524 social grants disbursed monthly by March 2024, reflecting a 1.63% growth from the 18,829,716 grants distributed at the end of March 2023. This increase underscores the expanding need for social assistance in South Africa, as grants reach an estimated 45% of the population.
Total grants disbursed:
- Child Support Grant (CSG) remains the most distributed, with 13.2 million grants, accounting for 69.1% of total social grants.
- Old Age Grant (OAG) is the second-largest, with 4.04 million recipients, representing about 21% of total grants.
- Disability Grant (DG) serves 1.06 million individuals, making up 5.5% of the grants.
These numbers reflect a persistent demand for financial support, particularly in low-income households where these grants often serve as a primary income source.
Financial Expenditure on Social Grants
SASSA’s expenditure for social grants in the 2023-24 financial year reached R250.53 billion, a 7.6% increase over the previous year’s R232.74 billion, demonstrating the government’s commitment to addressing economic vulnerabilities. Breakdown of expenditures by grant type includes:
- Child Support Grant (CSG): The CSG expenditure totaled R80.41 billion, making up 32% of the total grant spending.
- Old Age Grant (OAG): At R98.52 billion, this grant received the highest allocation, representing 39.3% of the total social grant budget.
- Disability Grant (DG): With an allocation of R27 billion, this grant constituted 10.8% of total spending.
Additionally, R33.74 billion was allocated to the COVID-19 Social Relief of Distress (SRD) grant, underscoring the ongoing economic relief efforts post-pandemic. This SRD grant provided crucial assistance to approximately 9 million beneficiaries monthly at the close of the financial year, targeting unemployed individuals without other means of support.
Regional Distribution of Social Grants
Regional data reveals significant disparities in social grant dependency across South Africa’s provinces:
- KwaZulu-Natal (KZN) has the highest number of beneficiaries, with 4.22 million grants, followed by Gauteng (GP) with 3.02 million and Eastern Cape (EC) at 2.89 million.
- The Northern Cape (NC) has the lowest number of beneficiaries, totaling 541,640 grants.
These regional differences underscore the varying socio-economic challenges across South Africa, with higher dependency observed in provinces facing persistent unemployment and poverty rates.
The Socio-Economic Role of Social Grants
SASSA’s social grants are essential for poverty alleviation and social stability, especially in provinces where formal employment is scarce. The General Household Survey (2022) reported that social grants are the second most common source of income for households nationwide, following salaries. This reliance is even more pronounced in economically disadvantaged regions such as the Eastern Cape, Limpopo, and Mpumalanga.
The Impact of COVID-19 SRD Grant
The COVID-19 SRD grant, introduced as a temporary measure during the pandemic, continued to support millions in the 2023-24 period. SASSA processed a total of 174.83 million applications for the SRD grant from April 2023 to March 2024, with a monthly average of 14.5 million applications. This substantial demand reflects the grant’s importance in providing economic relief to those unable to find employment.
By the end of the fiscal year, about 9 million individuals were regularly receiving the SRD grant, reinforcing its role in helping households meet basic needs amid high unemployment, which stood at 32.9% as of early 2024.
Efficiency Improvements and Financial Oversight
SASSA reported positive strides in administrative efficiency and cost-saving measures. The agency significantly reduced cash handling fees by encouraging beneficiaries to use ATMs and retailers instead of traditional cash pay-points, reducing dependency on the high-cost cash payment model. By March 2024, all physical cash pay-points had been closed, with beneficiaries redirected to electronic payment methods.
- Budget Adjustments: SASSA’s budget saw a 5% reduction due to broader national budget adjustments, requiring the agency to reprioritize spending.
- Alternative Power Solutions: In response to frequent load shedding, SASSA equipped 254 local offices with alternative power sources such as inverters and solar power to ensure uninterrupted service delivery during power outages.
Challenges and Future Outlook
Despite its successes, SASSA faces challenges, particularly in sustaining high levels of social assistance amid budget constraints. The agency’s reliance on electronic payment methods has streamlined costs, but issues related to fraud, irregular expenditures, and maintaining efficient distribution networks remain pressing concerns.
Moving forward, SASSA is exploring further digitalization and improved fraud prevention systems to enhance its service delivery. Additionally, the agency is actively working on measures to support disaster-affected regions with social relief programs and temporary aid in response to climate-related disasters.
Conclusion
SASSA’s 2023-24 performance underscores its essential role in supporting South Africa’s vulnerable populations through social grants. With 19.14 million grants distributed monthly, amounting to 45% of the population receiving assistance, SASSA’s impact on poverty alleviation is profound. As the agency continues to navigate financial challenges and explore more efficient systems, its work remains a cornerstone of South Africa’s social safety net.
Welcome to sassa.web.za! I’m Michael, your guide to all things grand, social security, and retirement. With 30 years in the financial industry, I’m passionate about simplifying retirement planning. Join me on this journey at sassa.web.za, where wisdom meets community, and let’s navigate the golden years together.