Sunday Times reports that SA's new Finance Minister Enoch Godongwana has drawn an early line in the sand over the question of a basic income grant (BIG), saying he would rather the funds be used to give work to unemployed black youngsters, instead of a handout.
In an interview on Saturday as he prepared to take up the hot seat vacated by Tito Mboweni, Godongwana was careful to tread a diplomatic path on the BIG, which many in the ANC see as a necessary measure amid low growth and a Covid-ravaged economy. He hinted at far-reaching proposals that would focus on millions of young people who were unable to find work. Godongwana reiterated that a more thought-out approach was required, something that has been misinterpreted in the party as him opposing the introduction of a BIG. “People are missing the point [on his BIG stance] … about 4.2 million of these people that are unemployed – using the narrow definition – are young people between 15 and 35 years. My argument is that we must invest in them. Even the amount we may spend could be more than a grant. We can’t condemn young people to a cycle of dependence, particularly because these are young black kids.” Godongwana added that it was his belief that the current approach to the BIG created dependency and did not address fundamental issues affecting youth unemployment. He went on to say: “What we need to do is invest in skilling these kids, and obviously they will have some cash which will be a stipend or per diem. And in addition let’s get them better development of skills.”
- Read the full original of the report in the above regard by Sabelo Skiti on page 1 of Sunday Times of 9 August 2021
- Read too, Godongwana warns against 'cycle of dependency' for youth in basic income debate, at Fin24
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