Since 1994, South Africa has made progress, but poverty, unemployment, and inequality remain high. According to the World Bank, 55.5% of South Africans live below the upper national poverty line of R1 268 per month, and 25% still face food poverty. Using an international poverty line of R28 ($1.90) per person per day, about 37.6% of South Africans are considered extremely poor.

Unemployment is another serious issue. By the end of 2021, the country had over 14.5 million unemployed people, with an official unemployment rate of 35.3%. When discouraged workers are included, the rate jumps to over 46.2% in urban areas and more than 50% in rural ones. Meanwhile, South Africa remains one of the most unequal countries globally, where the top 10% (mostly white South Africans) own over 80% of the country’s wealth.

Migrants in South Africa face even deeper struggles. Most are undocumented and can’t access formal support. Studies show that up to 96% of asylum seekers and refugees in cities like Durban live below the poverty line. During the COVID-19 pandemic, nearly two million working-age migrants lost their jobs or income. Many households go hungry—some even eat expired or less nutritious food just to survive.

To support both citizens and some migrants, the Government offers social grants. While these grants are proven to reduce poverty, very few studies focus on how they impact international migrants.

A research study funded by the NRF helps fill that gap by looking at how social grants affect migrant livelihoods in Cape Town, one of the cities with the highest number of foreign-born residents.

The Government offers these grants through SASSA, including the Child Support Grant (CSG), Disability Grant (DG), Old Age Grant (OAG), and others. Migrants who are refugees or permanent residents can qualify. By July 2021, over 51 000 migrants were receiving different types of grants.

This research used both surveys and interviews with 103 migrant households in Cape Town, along with NGO staff and focus groups. The goal was to understand how grants helped with key areas like education, health, shelter, food, and employment.

The research findings show that grants help meet basic needs. Many participants said the money helped cover food, rent, and school supplies. Some described it as “manna from heaven.” In times of crisis, such as xenophobic attacks or storms, grants were often the only reliable income. They helped families avoid selling their belongings or using harmful coping strategies such as pulling kids out of school or engaging in unsafe work.

Some migrants used grants to support small ventures like vending, hairdressing, or farming. This helped them become more self-reliant, especially since many were excluded from formal jobs due to their legal status or discrimination. The grants supported children’s school attendance and performance by helping parents afford uniforms, transport, and lunch. They also made it easier for families to visit clinics or traditional healers.

The study found strong links between grants and improvements in several areas, especially access to education, health services, housing, and clean water.