Why is this a “giant”?
South Africa’s exceptionally high levels of poverty and unemployment threaten the stability of daily life, exacerbate crime and violence, and increase human rights abuses.

What are the realities?
POVERTY: 22 million South Africans live below the poverty line, which is based on a household income of less than R401 a month. That means OVER ONE HALF OF ALL SOUTH AFRICANS live in poverty. As inflation and the cost of living increase daily, the ability for households to survive is threatened.

UNEMPLOYMENT: The unemployment figures continue to rise in South Africa. The current unemployment rate is above 30%, with the expanded definition at 46%. In the USA, financial analysts are worried because their unemployment is rising above 6%. There are not just enough jobs in South Africa.

RACISM AND INEQUALITY: Poverty and unemployment cannot be separated from race. 16.6% of South Africans receive 72.2% of all income, and a half of these people are now black. Another 16.6% receive 17.2% of income, and only 1.6% of these are black. At the very bottom of our society are 67% of our population sharing 10.6% of total income, and only 2% of this group are white.

What does this mean?
The unemployed are trapped - you need a job to have money, but it takes money to find a job. In order for people to find a job, they need money for transportation at the very least. More often, they need money for skills training, child care, and even resumes or interview clothing. It is not that the people of South Africa do not want to work. The twin problems are lack of jobs and the cycle of poverty that prevents the jobless from finding work. And for the very poor, a handout is just not enough to help them escape from a future they did not choose themselves.

What is being done?
One major policy initiative being discussed throughout South Africa today is the Basic Income Grant initiative that would provide an additional R100 to every South African without a means test. This would essentially eradicate abject poverty for 6 million South Africans and would push millions more over the poverty line. The Economic Policy Research Institute has done the research on the costs and benefits of BIG for the nation. In the meantime, government has substantially increased the social grant system, but is finding it hard to make sure everybody who qualifies actually receives their grant. But these remedies are only a safety net – we must build a job creating economy in which all can have dignified work.

What is our responsibility?
What are we doing as Church leaders to understand the cycle of poverty, the dangers of inequality and the dilemmas of economic growth which does not provide work? Are there ways in which we can both assist with the safety net and change the system which excludes so many?