Barriers to Welfare: South Africa's Flawed Grant System and the Impact on Its Poor
In South Africa, millions face exclusion from social grants due to obstacles in the welfare system, particularly flawed income verification processes. Automated checks, based on algorithms, often misclassify financial inflows, leading to high rejection rates. Experts call for a more inclusive approach to address the deepening poverty crisis.
South Africa's welfare system is under scrutiny as it leaves millions without much-needed social grants due to algorithm-based income verification checks. This flawed process often misclassifies financial inflows, resulting in high rejection rates for the Social Relief from Distress (SRD) grants.
Research by the Institute for Economic Justice revealed that a staggering 89.7% of eligible applicants were erroneously excluded from the grants. The impact is profound, as these funds are critical for those struggling in a country where unemployment hovers around 33%.
Experts argue for a more inclusive and less invasive verification system, emphasizing the need for a hybrid model that combines digital and in-person processes. As the government appeals a court ruling on the regulations' constitutionality, many families continue to struggle with basic survival.
(With inputs from agencies.)
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