ANC and alliance partners to explore feasibility of minimum income support grant – Magashule

ANC secretary-general Ace Magashule said in light of the current crisis of the coronavirus, their alliance partners South African Communist Party (SACP) and Congress of South African Trade Unions (Cosatu) have resolved to once again to explore the feasibility of introducing a minimum income support grant.

The ANC and its alliance partners held a virtual media briefing on Thursday on the effects of Covid-19 on the political economy.

Magashule said resourcing in post-Covid-19 would need recovery, development and must include a large drive towards domestic resource mobilisation from both the public and private sectors, through impact investments. 

He said: “To complement domestic resources and ensure an injection of public and private capital, mobilisation of funds internationally as well as foreign direct investment, should be encouraged.”

The alliance partners believed the economic situation that has arisen due to the pandemic will need to be addressed and that a minimum income grant conversation is now the right time to have it.

Magashule reiterated that the government should not approach the International Monetary Fund (IMF) and the World Bank for funding, given the ‘unpleasant’ role of these institutions in Africa.

“International funding should only be accepted if the conditions do not undermine, compromise, or subvert South Africa’s National sovereignty, democracy or independence.

“In concluding international borrowing agreements, we must, therefore, ensure that we also negotiate for affordable and low cost interest rates and guard against unfavorable exchange rate risks,” said Magashule.

Cosatu made a call on Wednesday that universities and other institutions of higher learning to cancel historical student debt.

Cosatu spokesperson Sizwe Pamla said in a statement that there was a disproportionate number of young workers that enter the labour market were heavily indebted with historical debt largely acquired through student loans.

Pamla said: “The Covid-19 lockdown has deepened the financial stress that is faced by many workers who have impaired credit records and are unable to repay their debts on time. Some of these workers risk losing their jobs, have their wages reduced and their possessions like cars and houses repossessed.”

Due to the impact of the coronavirus, he further stated that many workers purchasing power had been reduced and that most of the income was used to pay off debt.