Zwelinzima Vavi, the General Secretary of (South African Federation of Trade Unions) SAFTU has called for the implementation of an unconditional basic income grant ahead of the Finance minister, Enoch Gondongwana’s first Medium Term Budget Policy Statement (MTBPS). Vavi said the grant should be aimed towards unemployed South Africans between the ages of 18 and 59.

Vavi was speaking at the Cry of the Xcluded – an anti-austerity group – event on Wednesday ahead of the MTBPS on Thursday, 11 November, which will be Finance Minister Enoch Godongwana’s first budget speech.

Vavi said the basic income grant should be at least R1500 in order to help the unemployed meet their living needs. He added that the grant would boost the economy by creating demand for products and services, which would in turn create jobs.

“People are starving and without food. To end this, the state should look to progressively introduce an unconditional universal basic income grant. We need a basic income now for 18 to 59-year-olds who are without a stable income, to receive a basic grant from the state,” said Vavi.

“Government must focus on attracting the people back into the economy instead of just foreign investors.”

Vavi said “the rich and big polluters” must be taxed to fund the grant so that the poor can live.

Economist Mike Schussler said the only way to close the poverty gap in the country – in the long run – is to create more jobs. He referred to the 12 million unemployed people as the main crisis.

“I find the idea of taxing the rich quite funny because the unions represent most of the rich in South African terms, civil servants make up about 40% of the top 10% of taxpayers.

“Obviously not all unions are rich, but the point is if you’re going to tax the rich, there’s very few rich left in South Africa and if they also leave there will be bigger problems,” said Schussler.