Kaizer Raseane Makole et al., The Feasibility of the Basic Income Grant to Cushion the Effect of Unemployment among Local Community Members in the City of Tshwane Metro (2025)

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Article by Kaizer Raseane Makole, Bhekabantu Alson Ntshangase and Steven Kayambazinthu Msosa in the Baltic Journal of Economic Studies, Vol. 11 No. 2, 2025, on whether a Basic Income Grant could cushion unemployment in Region 1 of the City of Tshwane Metro, South Africa. The authors ran focus groups with unemployed youth, adults and graduates and frame the grant in Keynesian terms. They cite an official unemployment rate of 32.1%, or 7.9 million people, and say COVID-19 lockdowns made it worse. They find the grant could provide support but that missing skills limit self-sufficiency, and they urge the government to teach entrepreneurship, saving and investment.

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“Kaizer Raseane Makole et al., The Feasibility of the Basic Income Grant to Cushion the Effect of Unemployment among Local Community Members in the City of Tshwane Metro (2025).” Original at baltijapublishing.lv. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/kaizer-raseane-makole-et-al-the-feasibility-of-the-basic-income-grant-8e6bdced54/, SHA-256 fd7c19b3ded968ccc74a838d49a5476a858b9421538f0eb8a878f460ba5b8ac9.

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Baltic Journal of Economic Studies
Vol. 11 No. 2, 2025
DOI: https://doi.org/10.30525/2256-0742/2025-11-2-1-12

THE FEASIBILITY OF THE BASIC INCOME GRANT
TO CUSHION THE EFFECT OF UNEMPLOYMENT AMONG LOCAL
COMMUNITY MEMBERS IN THE CITY OF TSHWANE METRO
Kaizer Raseane Makole1, Bhekabantu Alson Ntshangase2, Steven Kayambazinthu Msosa3

Abstract. The COVID-19 pandemic further compounded the issue of unemployment, a consequence of depressed
economic activity resulting from the implementation of lockdown measures by the South African government.
Consequently, the country has been unable to achieve economic recovery through job creation. The present study
adopted the Keynesian Theory to demonstrate how a redistributive model of creating economic stimuli can lead to
an economic growth trajectory. This is achieved by encouraging people to earn an income that can facilitate their
active participation in economic activities. This is in contrast to the neo-liberal macro-economic pathway of cutting
expenditure but relying on the trickle-down effect of employers creating jobs, a strategy which has proven to be
unsuccessful. The present study examined the feasibility of the Basic Income Grant (BIG) as an effective intervention
tool against unemployment in Region 1 of Tshwane Metro in the Republic of South Africa. A qualitative and
exploratory research design was adopted, incorporating a case study and focus group interviews with unemployed
youth, adults, and graduates as data collection techniques. The findings of this study demonstrate that a Basic
Income Grant can provide financial assistance to cushion against unemployment. Moreover, the study established
that an absence of skills acquisition impeded the participants' capacity for self-sufficiency. It is incumbent upon
the South African government to facilitate the development of its citizens' mindset by providing a foundation of
knowledge in entrepreneurship and cultivating a culture of saving and investment. This could encourage those
who benefit from the Basic Income Grant to utilise the disbursement mechanism to establish small businesses and
subsequently employ other members of the community.
Keywords: Basic Income Grant, City of Tshwane Metro, culture of entrepreneurship, Keynesian model,
redistributive economy.
JEL Classification: L26, H4, D1

Author Contributions:
"Conceptualization, K.R. M. and B.A.N.; methodology, K.R.M. and S.K.M; software, K.R.M.; validation, K.R.M.,
B.A.N. and S.K.M.; formal analysis, K.R.M.; investigation, K.R.M. and B.A.M; resources, K.R.M.; data curation, S.K.M.;
writing – original draft preparation, K.R.M. and B.A.M; writing – review and editing, S.K.M.; visualization, K.R.M.;
supervision, B.A.M.; project administration, K.R.M.; funding acquisition, B.A.M. All authors have read and agreed
to the published version of the manuscript."

1. Introduction unemployed in poor communities. Currently, the
The pervasively high unemployment rate in South official unemployment rate in South Africa stands
Africa necessitates a conceptualisation of BIG as at 32.1%, comprising 7.9 million unemployed
an effective socio-economic development tool to citizens, including youth, graduates and adults who
generate sustainable livelihood measures or strategies are supposed to be in the labour force but are unable
through social security support from the government, to access job opportunities, according to indicators
which can lead to self-sustainability amongst the from the Quarterly Labour Force Survey in the fourth

1
Tshwane University of Technology, South Africa
ORCID: https://orcid.org/0000-0001-5860-2336
2
Mangosuthu University of Technology, South Africa
ORCID: https://orcid.org/0000-0002-5410-7036
3
Mangosuthu University of Technology, South Africa (corresponding author)
E-mail: kayambazinthu@outlook.com This is an Open Access article, distributed under the terms
ORCID: https://orcid.org/0000-0001-9074-5644 of the Creative Commons Attribution CC BY 4.0

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Vol. 11 No. 2, 2025
quarter of 2024 (Statistics South Africa, 2024). misguided and irresponsible. It was believed that this
Unemployment in the 15-64 age group in the City of would reduce the country's creditworthiness, ability
Tshwane Metro comprised the following categories of to borrow from international financial markets, and
citizens: unemployed 680 000, inactive 764 000 and plunge the country into economic crisis (Centre for
discouraged jobseekers 80 000, which together Development Enterprise, 2022). As these ideological
make up 35 percent of the City of Tshwane Metro debates persist at the macro-level, the impoverished
population (Statistics South Africa, 2024). and unemployed local citizens of Region 1 in the
The intransigence and persistence of the South African City of Tshwane Metro continue to grapple with
unemployment rate, a hallmark of post-democratic destitution, starvation, and the incapacity to attain
South African society, necessitates a paradigm shift self-sufficiency, largely attributable to the inadequacy
in the government's theoretical approach, towards of social security intervention strategies that are
a redistributive economy rather than social security designed to ameliorate the plight of the unemployed.
and welfare services. This paradigm shift necessitates The present study therefore analysed the feasibility
a transition in social security policies and strategies of implementing a basic income grant to provide
from a consumption mentality to a redistributive cushioning against unemployment among local
human capital development approach, as outlined community members in the City of Tshwane Metro.
in the National Development Plan's strategic vision
for 2030 (National Planning Commission, 2012).
It is the position of public policy experts, civil society 2. Theoretical Background
organisations and labour unions that the South of the Keynesian Model
African government should align a redistributive The Keynesian model, which emphasises economic
economy with current social security and welfare redistribution, critiques the Neo-classical economic
policies and measures. Examples of such measures theory as being acquiescent to Adam Smith's Market
include the Basic Income Grant (BIG) and child support Economy. This has major implications for socio-
grants, which encourage a distributive and human economic outcomes in Western European countries
capital development perspective (Makole, Ntshangase, (Pecchi & Piga, 2010). Frank (2008) offers an
Maringa & Msosa, 2022; South African Human Rights interpretation of neo-classical economic theory
Commission, 2018). A human capital developmental that posits the assumption that the mitigation of
approach is significant in order to cushion poor citizens unemployment can be achieved through the lowering
against unemployment and stimulate their economic of wage demands, thus creating conditions that
participation so that they become self-sufficient and facilitate the hiring of labour as the economy
sustainable. experiences growth. Conversely, Keynes (1936)
The official high unemployment rate of between adopted an economic analytical model conceptualised
32.4 and 32.1 per cent from 2021 to the most recent through a multiplier effect in the economy whereby
fourth quarterly Labour Force Survey in 2023 was redistributive conditions are created for wage-earners
exacerbated by the COVID-19 lockdown measures, to spend money to stimulate economic growth through
which led to social unrest in the provinces of active participation in the economy, thus reducing
KwaZulu-Natal and Gauteng (Mlaba, 2021; Statistics unemployment. Crocker (2015) affirms Keynesian
South Africa, 2024). Olaitan, Issah and Wayi (2021) economic modelling by emphasising that employment
criticise the inertia of the South African government and job creation opportunities should correlate with
in decisively addressing the tragedy of unemployment human consumption as the populace buys goods and
affecting the majority of poor and unemployed services and actively participates in the economic
citizens, despite President Ramaphosa's promise of activities that stimulate market demand and supply.
a "New Dawn" through economic investment to create Piketty (2014) alludes to the importance of the Basic
jobs and improve socio-economic conditions. There Income Grant as an economic stimulus or intervention
is a discrepancy between the policy stance of the tool that can provide access for the unemployed and
governing African National Congress and that of marginalised in a society to actively participate in the
the party with regard to social security and welfare. economy as they buy and sell goods and are taxed to
The African National Congress is in favour of the Basic contribute to the fiscus. Chen (2021) reaffirms the
Income Grant (BIG), which it views as a redistributive Keynesian economic model that characterises the
measure that would allow the unemployed and Basic Income Grant as a socio-economic intervention
impoverished to participate in the economy (Sachs, tool that can stimulate economic growth and offset
2022). In contrast, the other grouping of African unemployment by enhancing the government's
National Congress leaders, who are supported by redistributive capacity. According to the Keynesian
the Centre for Development Enterprise, adopted an economic model, demand should improve supply
antagonistic posture against BIG. This was due to the through spending rather than relying on macro-
view that the socio-economic redistributive tool was economic instruments such as taxation, which

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Vol. 11 No. 2, 2025
depresses the economy, undermines job creation and lives in a depressed economic climate where economic
reduces consumer purchasing power. The implication growth and productivity for job creation has been
of the Keynesian economic model for the study demonstrated to be illusory. Ford (2015), Reed and
is that government's reliance on economic growth Lensely (2016) and Santens (2016) agree with the
through the trickle-down effect of investment to create notion that BIG for the poor and unemployed is an
jobs has proven to be insufficient and inadequate. intervention to increase their economic participation
This implies that South Africa needs to reassess its through access to disposable cash, goods and
socio-economic growth strategy and develop services and engagement in sustainable livelihood
intervention tools such as the Basic Income Grant that activities that can lead to the establishment of a small
can bring many citizens into the centre of economic business and the inculcation of an entrepreneurial
participation and stimulate economic growth. spirit. The South African government then has the
opportunity to learn from its international counterpart
such as South Korea, which has transformed its
3. Effects of the COVID-19 Pandemic economic growth trajectory by utilising the
on the Deepening Unemployment determinants of basic income policies as part of
and Inequality Crisis in South Africa its distributive economic approach to empower its
Francis, Valodia and Webster (2020) describe how citizens towards socio-economic self-sufficiency
the COVID-19 pandemic exacerbated inequality by (Baumann and Gallagher, 2013).
causing massive unemployment due to lockdown In the case of Namibia, which is located in closer
measures. The COVID-19 pandemic highlighted the proximity to South Africa and shares almost similar
extent of inequality in South Africa, as the current socio-economic determinants with South Africa, the
macro-economic framework created a situation in basic income grant pilot project was modelled on the
which the wealthy benefited economically, while the basis of a partnership with civil society and church
poor, unemployed and economically marginalised in organisations with a view to generating sustainable
black and coloured townships and informal settlements livelihoods for the unemployed in the Omitara/
were excluded from the mainstream economy by Otjivero settlement (Polamaki, 2010). The Namibian
numerous market forces, deepening the unemployment basic income grant's successful piloting in the Omitara/
crisis. During the level-five lock-down, the majority Otjivero settlement generated human development
of the poor in townships and informal settlements indicators such as a decrease in child malnutrition; an
who relied on informal trade were forced to stay at increase in households' incomes as family members
home and earned no income, while the middle clubbed together to start small businesses to augment
class were employed or earned dividends from the basic income grant of N$100 per individual in
shareholding. Rogan and Skinner (2021) stress a household; and reduced poverty and related crime
that poverty, unemployment and inequality are rates (Shejavali, 2009).
characteristic features of post-apartheid South Africa,
demonstrating that democratic and redistributive
dividends have not yet trickled down to the poor and 5. The Basic Income Grant
marginalised members of society. The World Bank as a Driver of Economic Growth
(2022) has characterised South Africa as the most and Sustainability
unequal society in the world, a state of affairs attributable The fundamental tenet of the policy is that
to uneven socio-economic determinants, such as labour the fundamental objective is to be driven by an
displacement and deepening inequality. This suggests economic growth and sustainability perspective that
that the egalitarian society that was promised in contributes to human development capabilities for
numerous governing African National Congress policy the impoverished and unemployed as they transition
manifestos and strategies, such as the Freedom Charter from marginalisation to active economic participation
and Reconstruction and Development Programme, through the expenditure of these monetary grants,
became nothing more than empty electioneering using such grants to establish small businesses and
slogans (African National Congress, 1994; African social clubs (stokvels), and co-operatives that can
National Congress, 1997). create low-scale employment opportunities for their
fellow community members (Satumba, Bayat, &
Mohamed, 2017; Seekings & Matisonn, 2012). The
4. Basic Income Grant Congress of South African Trade Unions (COSATU)
From an international perspective, Pulkka (2017) adopted a strategic position of engaging with the
conceptualises the Basic Income Grant (BIG) as South African government to conceptualise, design
a socio-economic stimulus that should be implemented and implement the Basic Income Grant, which is to be
irrespective of a means test or work requirements, sustained by taxing the wealthy through the creation
with the objective of enhancing the quality of citizens' of a wealth tax. The Congress of South African Trade

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Unions (COSATU) asserts that political reconciliation The second category comprised six youth who
should be accompanied by economic redistribution, were not in education or employment, constituting
which should serve as an indication of social solidarity 30 percent of the unemployed population nationally.
by those who benefitted from apartheid and the The third category comprised six unemployed adults
economic dividends of democratic South Africa who were local community members in Region 1 of
(Henderson & Quiggin, 2019). the City of Tshwane Metro. These participants were to
Another measure that can strengthen the be sampled and selected to participate in focus group
sustainability of the Basic Income Grant (BIG) is interviews. These interviews were to be guided by their
to arrest financial malpractices, corruption and poor experiences and ingenuity to explore and analyse the
economic management systems within the three research phenomenon (Welman, Kruger, & Mitchell,
government spheres and state entities in South 2005). However, the study was conducted with
Africa that caused economic losses of R 11, 9 billion, 13 participants from 3 different focus groups based on
as identified in the annual audit report of the Auditor- the demographic or social profiles of the unemployed
General of South Africa from 2020 to 2023 local community members. The unemployed local
(Auditor-General of South Africa, 2022). This suggests community members comprised unemployed
that South Africa is not a financially disadvantaged graduates; youth not in education, employment, or
nation unable to allocate funds for the Basic Income training (NEET); and unemployed adults at Region
Grant; rather, it is a country grappling with systemic 1 in the City of Tshwane Metro due to time and
challenges such as corruption and inadequate fiscal financial constraints. MacDougall and Fudge (2001)
management. It is recommended that the South posit that the rationale for purposive sampling in focus
African government adopts prudent budgetary group interviews is to select cases that can provide
discipline, with a view to diverting available funds rich data and are theory-driven. Saunders, Lewis and
to kickstart the Basic Income Grant as an economic Thornhill (2016) expound the notion that qualitative
distributive measure. Such redistributive and data analysis is framed by an inductive approach,
transformational approaches have the potential to meaning that patterns, themes and categories of analysis
enhance human capital development and improve the emerge from the data itself rather than being imposed
quality of life of the economically disadvantaged and on it prior to data collection and analysis. A thematic
unemployed population in townships and informal analysis was employed, following a step-by-step process
settlements by increasing tax collection and creating that is transparent in order to demonstrate how the
economic opportunities for marginalised groups. researchers developed the main themes from the data
transcripts of the focus group participants (Higgs,
6. Methodology 2001). The chosen measures of study trustworthiness
were credibility, which encouraged member-checking
A qualitative research approach using focus group
of generated themes for consistency with focus group
interviews as a data collection tool with unemployed
participants' views (Neuman, 2011); informant data
adults, graduates and youth in Region 1 of the
triangulation, which allowed comparison of generated
Tshwane City Metro was adopted to study the
views from different categories of focus group
feasibility of the Basic Income Grant as an effective
participants; and peer debriefing among researchers
intervention tool that can alleviate unemployment.
to agree on final generated themes (Lincoln &
This method allowed for thick, rich descriptive data
Guba, 1985).
to be generated. Sileyew (2019) defines research
methodology as a path or process that a researcher
follows to conduct a research study and arrive at 7. Results and Discussion
findings. Gounder (2013) characterises the research
methodology as a systematic approach to the resolution 7.1 Themes and Discussions
of research problems, encompassing a series of Based on the Results
research steps and the underlying logic of each. The of the Focus Groups Participants
employment of a case study design was instrumental The initial segment of the findings proffers
in the analysis of activities, events and processes within biographical profiles of the focus group participants,
a specific social setting (Creswell, 2014). The present predicated on their social categories, age, gender,
inquiry was conducted using an exploratory case personal attributes and future plans. The second section
study design, which entails a thorough description of this study outlines the themes and discussions that
of a social phenomenon within a real-life context, were generated from the findings of various focus
rigorously exploring and analysing a scenario within groups. These groups were tasked with responding to
a social setting (Babbie, 2011). A sample of participants a series of questions relating to the conceptualisation
was to be drawn from three distinct categories. The of the Basic Income Grant as a feasible socio-economic
first category comprised six unemployed graduates. tool. The tool is designed to cushion local community

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Vol. 11 No. 2, 2025
members against unemployment. The types of or another. The subjects of this study have expressed
challenges experienced by the unemployed local a desire to pursue entrepreneurial or business
community members that discourage them from opportunities in the future. In addition, they have
engaging in sustainable livelihood activities are also expressed a wish to engage with their communities
discussed. Finally, the section presents the lessons and and contribute to the socio-economic development
ideas that were derived from the unemployed local of these communities. They do not want to just sit at
community members. These pertain to the feasibility home and wait for government welfare programmes,
of the Basic Income Grant in cushioning against but want to use them to build their lives and businesses
unemployment in Region 1 of the City of Tshwane and contribute to the development of the country's
Metro. human capital. Table 1 shows the demographic
profile of unemployed graduates.
7.2 Demographic Profile
of Focus Group Participants 7.3 Demographic Profile
In order to maintain confidentiality in accordance of Unemployed Adults
with research ethics, the researcher created a code The three unemployed adults in question were
for unemployed adults in the focus group as (UA), all female, with ages ranging from 45 to 50 years.
unemployed graduates as (UG) and unemployed The subjects of this study have previously been
youth as (UY). The demographic profile of the employed, but lost their jobs under different
unemployed graduates ranged from 25 to 35 years of circumstances, especially during the period of the
age. Four were male and two female. Their personal Coronavirus pandemic in 2021. They have accumulated
attributes indicate that they are active in general professional experience in the corporate and
repairs and household maintenance, have completed IT sectors. Furthermore, the subjects have children,
undergraduate and post-graduate degrees, and are and two of them are single parents. The subjects are
active in a community or business sense in one form engaged in personal development and entrepreneurial

Table 1
Demographic profiles of unemployed graduates
Participant Age Gender Personal attribute Future plan
Started a business in the field of general repairs Looking for funding and networking opportunities to
UG1 25 Male
and household services. formalise a business.
Vision is to start a horticultural business, growing
UG2 27 Female About to complete PhD in Chemistry.
and selling plants and herbs.
Artificial Intelligence Graduate running Want to start corporate business & create social
UG3 35 Male
advertising and marketing Arts. engineered robots.
Community radio presenter & started
Aspiring author working on a book titled “Black
UG4 30 Male community development outreach program
Father” looking for permanent presenter job.
“Invest In A Child”.
Psychological Counselling Graduate. Want to be introduce in Radio production
UG5 30 Male Having passion for music producing and registering music publishing and record label
and writing. company.
B Comm in Insurance & Marketing Graduate. Aspiring writer of short stories, poetry
UG6 33 Female
Currently studying LLB. and motivational speaker.

Table 2
Demographic profile of unemployed adults
Participant Age Gender Personal attributes Future plans
Studying the business of a massage parlour.
Want to employ other people. Joined a coach
UA1 48 Female Single mother, two children. One of them studies
programme for women.
at home because of the lack of transport costs.
Was retrenched in corporate sector during the
Intend to expand a business that will supply funeral
COVID-19 pandemic in 2021. Make a living by
UA2 50 Female parlour with flowers and aim to online business
selling perfumes and pit latrine toilets cleaners. A
course.
mother of three children
Selling perfumes online to survive and want to be
Unemployed but used to work in IT sector until an entrepreneur. Also starting a cleaning business
UA3 45 Female
late in 2021. A mother of one child. online to employ unemployed women for domestic
work. Looking for multiple income opportunities

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endeavours, including the sale of perfumes and pit- future plans. Table 3 provides a detailed description of
latrine cleaners, and the undertaking of coaching courses. the unemployed youth demographic.
These participants are also aspiring businesspeople
who require support so that they can leverage
7.5 Themes and discussions from focus groups
their businesses. As illustrated in Table 2, the
interviews with unemployed graduates,
demographic profile of the unemployed adults is
unemployed adults and unemployed youth
presented.
in Region 1 in the City of Tshwane Metro
The study does not purport to represent the views
7.4 Demographic Profile of Unemployed Youth and perceptions of all local community members of
The age range of the unemployed young people Region 1 in the City of Tshwane Metro in relation to
is 24-28 years. There were two women and two men. the feasibility of the Basic Income Grant to alleviate
Their characteristics include being unemployed unemployment. The findings cannot be generalised,
but involved in marketing, repairing cupboards and but they can be used to generate new theories and
some building and painting. The female is employed ideas and serve as a basis for future research projects
part-time in a shop, while the male also volunteers that might be similar and relevant to the topic.
as a communications officer for the SAPS in the area. Three themes and six sub-themes were generated to
Their future plans include the pursuit of productive answer questions about the conceptualisation of the
endeavours, with a particular focus on enhancing Basic Income Grant as a viable socio-economic tool
their skills in cabinetry. They are enthusiastic about against unemployment, the challenges faced by local
motivation and aspire to become a criminologist. citizens that discouraged them from participating in
In contrast, a female who is part-time employed is livelihood activities, and lessons and strategies on
actively seeking full-time employment. The analysis the feasibility of the Basic Income Grant as a cushion
indicates that these youth are proactively engaged in against unemployment. Three themes were generated
their communities rather than being passive recipients from different focus group interviews, namely financial
of grants. It is the contention of the present study that assistance and disempowerment, lack of skills acquisitions
grants are viewed by the relevant parties as a means to and self-sufficiency, and change mindset and scaffolding,

Table 3
Demographic profile of unemployed youth
Participant Age Gender Personal attribute Future plan
Desires to do something
UY1 28 Female Unemployed and studying marketing.
about her life.
He is skilled in the repair of buildings, cupboards and
household painting. He does not consider education to be To invest in his construction
UY2 24 Male synonymous with the development of skills. He considers and repair skills to turn them into
himself to be a creative thinker. He considers himself a serious business.
to be self-employed.
UY3 24 Female She is part time employed. She is looking for a job.
He is driven to make a positive
He is currently volunteering as a communication officer
impact on the community
UY4 27 Male at SAPS. He is an amiable and approachable individual
by using his skills as a motivator
who is always pleasant and transparent.
and criminologist to solve crime.

Table 4
Themes and sub-themes on the feasibility of the Basic Income Grant Financial assistance and disempowerment
Research questions Themes Sub-themes
How can the Basic Income Grant be conceptualised as a feasible socio- Theme 1: Financial
1.1. Wastage of human potential
economic intervention tool to cushion local community members assistance
1.2 Human mindset
against unemployment at Region 1 in the City of Tshwane Metro? and disempowerment
What types of challenges are experienced by the unemployed local Theme 2: Lack of skills
1.1. Erosion of the culture of Ubuntu
community members that discourage them from engaging in sustainable acquisitions
1.2. Personal dehumanisation
livelihood activities at Region 1 in the City of Tshwane Metro? and self-sufficiency
What lessons and ideas can be derived from the unemployed local
1.Monetary value versus high cost
community members concerning the feasibility of the Basic Income Themes 3: Change
of living
Grant to cushion against unemployment at Region 1 of the City mindset and scaffolding
2.Public engagement and development
of Tshwane Metro?

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whereas the six sub-themes that aligned with these It is more of a permanent structure of grants than what
main themes were wastage of human potential, human it is now. It is something that you can get to survive – UY1
mindset, erosion of the culture of Ubuntu, personal In my understanding it is a form of income that can
dehumanisation, monetary value versus high cost of assist you with basic needs if you are less fortunate – UY3
living, and public engagement and development. Themes The analysis of the discussions with the three
and discussions are supported by data findings from categories of focus groups (unemployed adults,
different focus groups interviews. graduates and youth) revealed differences in their
When different categories of focus groups, namely conceptualisation of the Basic Income Grant.
unemployed graduates, youth and adults, were asked The two categories of unemployed adults and youth
to conceptualise the Basic Income Grant as a feasible expressed a favourable opinion of Basic Income
socio-economic tool against unemployment, they Grants, asserting that it could provide them with
saw it as both financial support and disempowerment. a degree of financial security, thereby helping them
Their reflections were that if it can be used well, to meet basic needs while awaiting permanent
it can serve as a financial support for the unemployed employment. However, the graduate category warns
by using it to increase money in their small businesses, that it should not be seen as free money that encourages
but based on their personal experiences with other people to be unemployed. The implication is that
social support measures currently provided by the the Basic Income Grant should be carefully designed
government, such as the Social Relief Grant, it can so that it is not misconstrued as free money that
have a disempowering effect because it introduces an encourages laziness in the community.
element of over-dependence. A range of factors have
been identified by different categories of focus groups
as contributing to the notion of financial assistance. 7.6 Waste of Human Potential
These include survival mechanisms, assistance with Different categories of focus groups indicated
basic needs, human limitations, free money, and that the lack of unemployment in their community
poverty assistance. The unemployed adult focus group is a waste of human potential, outlining factors such
expressed a favourable opinion of the Basic Income as lack of income, not earning, struggling to survive,
Grant; however, not all focus group members in the lack of creativity from government and inability to
graduate and youth categories were positive about provide for oneself. According to unemployed adults,
BIG conceptualization. Some of the views from the the waste of human potential due to unemployment
category of unemployed adults in the focused group is as follows:
alluding to the positive effect of BIG were as follows: I was working in an engineering company and was
It is an income that the government gives to the public retrenched in 2020, I do not have income at all, and is
to assist against poverty – UA2 difficult to survive under current conditions – UA1
It assists the community from previously disadvantaged I’ll say the same thing. I don’t earn anything; we depend
backgrounds to survive, those who are not working. on working without doing anything – UA2
That is my understanding, it is a relief for the The unemployed youth identified lack of experience
unemployed community – UA1 and inability to self-serve as the main problems
The arguments of the unemployed graduates and affecting them and described it as a waste of human
young people who outlined the disempowering effect potential. They explain their unemployment situation
of the Basic Income Grant stem from the fact that it in the following way:
can have some limitations because it can be seen as Most people are staying at home because the companies
free money. Participants 6 and 4 from the focus group are asking for 4 years of experience whereas there is
of unemployed graduates alluded to its limitations no other thing to do – UY3
as follows: One member in the category of unemployed
For me, it’s just felt like these social grants are graduates also indicated that his state of unemployment
another limitation, same as the government, they said they denies him an opportunity to generate an income by
gave us democracy, but we have not been given economic stating that:
freedom since 1995 – UG6 Not having to work denies me opportunities to
My understanding of the Basic Income Grant is free generate an income – UG5
money. If you want free money from the South African All focus group members in the three categories
government, then ask for it by being unemployed – UG4 agreed that unemployment is a waste of human
On the contrary, the unemployed youth focus potential, as they were laid off during the
group category revealed that a Basic Income Grant COVID-19 pandemic and stopped earning an income.
can be a measure of assistance in meeting basic needs This makes it difficult for them to survive and affects
and assisting them to survive whilst looking for their self-sufficiency. They see themselves as
employment. Their views are captured as follows: unproductive in society and the community and

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Vol. 11 No. 2, 2025
expect the government to come up with measures BIG can serve different purposes depending on one's
such as a Basic Income Grant to cushion them against state of mind.
such a state of hopelessness.
7.8 Lack of Skills Acquisition
7.7 Human Mindset and Self-Sufficiency
The conceptualisation of the Basic Income Grant Lack of skills acquisition and self-sufficiency were
(BIG) as a feasible socio-economic tool against outlined as challenges faced by unemployed members
unemployment is also aligned with the human of the community in Region 1 of the Tshwane Metro.
mindset. All focus group categories perceive how the Focus group members explained that as a result
human mindset can either guide one to use BIG in of the lack of skills and the inability to be self-sufficient
a productive way, or a negative human mindset can in their local community, they experience challenges
lead to its abuse. A number of factors have been such as social stigma, drug addiction, lack of personal
identified as having a significant influence on the empathy, rejection, depression, loss of morality,
manner in which the unemployed utilise BIG, inhumanity and loss of a sense of caring. Focus
yielding both positive and negative outcomes. These group members from the unemployed adult category
factors include investment mentality, job creation reflected on challenges manifesting in the lack of
and employment opportunity, dependency, and skills acquisition and inability to be self-sufficient by
hopelessness. noting that:
The views of different focus group members, The first challenge is that as a member of the family,
categorised according to their status as unemployed they do not take you seriously. They look down on you,
adults, youth and graduates, relating to how BIG is and you become depressed – UA3
influenced by the human mindset are captured as In the community, you can get involved in drugs like
follows: nyaope, especially where I am staying. Crime also goes up
If I go to work then I have this money, it means because people are just idling and looking for opportunities
that I will not get it anymore, therefore I rather depend to steal smartphones, furniture and cars from their
on it – UY3 neighbours – UA3
With that said, I think there are lots of factors into it. The challenges faced by the category of unemployed
Like a small amount to some certain degree, it’s adults were also highlighted in the focus group with
buying groceries and other things and you do not know graduates, who noted mental depression as a huge
where to start from. It is also hopelessness that she is challenge. Unemployed youth 2 and 3 also mentioned
speaking about – UG5 these challenges in their responses:
While the youth category and some graduates You are sitting at home every day; you are depressed
warned that BIG could create a mentality of because people around you are going somewhere but
dependency and hopelessness due to over-reliance you are sitting in one place – UY2
on it, the unemployed adult category and another I think I agree with mental health because it is a lot of
graduate supported it as it could lead to an investment things – UY3
mentality and employment opportunities. They For unemployed graduates, the problems of
explain their positive view of BIG with the following unemployment are manifested in social stigma and
comments: rejection by families and other community members.
We can use a Basic Income Grant to create investment Their perception of the problems was formulated as
and employ three extra people from that – UA3 follows:
I just believe that it should increase, because I can say Social stigma is the way people view you, that you have
let me re-invest this so that it can increase and next month failed in life as being unemployed at that point, without
make it increase again. So, the mentality that I have is that wanting to know about your plans in life, the type of person
I can increase it to invest in my business – UG3 you are and what you think about the community – UG6
The analysis from different categories of focus The participants encountered various challenges,
groups relates to divergent mindsets about how they including social stigma, rejection, and depression. They
can use the BIG. For some participants in different perceived society to be inhumane due to their lack of
categories, the phenomenon can engender a mindset of the necessary skills to become self-sufficient and create
dependency and hopelessness, resulting in community employment opportunities. These challenges have
members becoming solely dependent on it. Conversely, the effect of creating a further alienation from social
for other members in the same categories, it can networks of support, as the subjects are stigmatised
engender a mindset of investment, job creation and become isolated in their families. The resultant
and employment opportunities for members in the factor is a lack of social capital that they can leverage
communities. It is evident from the analysis of the to improve their lives and acquire relevant skills that
discussions with the various focus group members that can render them self-sufficient.

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7.9 Erosion of the Culture of Ubuntu that this undermines their humanity and that of
Unemployed graduates, adults and youth associate community members, as they become inhuman
their living conditions with unemployment, and may start hijacking cars and stealing from their
interpreting this as a manifestation of the erosion of neighbours. This lack of a sense of caring for oneself
the culture of Ubuntu amongst their family members and other members of the community leads to mental
and communities. It is asserted that BIG is capable of depression as people struggle to survive and will do
ameliorating the following challenges that individuals anything to get by, even if it means hurting those they
face in relation to the impact of employment: personal see as having "made it". Personal dehumanisation due
struggles, a paucity of personal empathy, emotional to unemployment is a contributing factor to the high
exhaustion, and a decline in morality. crime rate in the community.
Their views to demonstrate how the culture of Ubuntu
has been eroded from the community and family 7.11 Change Mindset and Scaffolding
members because of being unemployed are stated as
When different categories of focus groups were
follows:
asked to reflect on lessons and strategies that can be
They are emotionally draining. The thing is that
devised on the feasibility of a Basic Income Grant to
I ask myself what the use is, I feel so depressed in this
cushion against unemployment in Region 1 of the
country – UA1
City of Tshwane Metro, change mindset and scaffolding
It is about struggling because there is no helping hand
were generated as a theme. According to the alumni
from the family. You can even be influenced by your
focus group, the factors that contributed to lessons
family to get involved in prostitution to survive – UG3
and strategies on BIG for unemployment protection
The challenges mentioned by the focus group
were effective use of money, cascading job creation
members are a manifestation of the erosion of the
and starting new businesses. The alumni focus group
Ubuntu culture as family members do not lend
identified these factors as lessons and strategies
them a helping hand and even encourage them to
that could contribute to the effective use of BIG for
engage in immoral acts such as prostitution for the
sake of survival. These challenges leave most of the unemployment protection, noting the following:
participants emotionally depressed. The views of most A lot, there is so much work to be done by the
of the focus group participants show that they cannot government in our communities. As members of the
cope with being unemployed and therefore need some community, we need to change how we think. If it is to be
form of intervention like BIG to cushion them until done well – UG1
they can get back on their feet. As I see it, I also think it depends on how we think,
I mean. If we discuss with people, they must think better
about what they can do with the money they receive – UG2
7.10 Personal Dehumanisation You can use it to start a stokvel where you contribute
Focus group members indicated that the lack of money so that it can increase and assist you to buy stock
employment and support from their families and and sell – UG4
communities leads to personal dehumanisation, From the testimonies of the unemployed graduates,
manifested in value judgments, inhumanity, loss BIG should be aligned with a change in mindset where
of a sense of caring, lack of support, being seen as members of the community and the government
useless, anxiety and depression. All the members of should develop approaches where money can be
the three categories of focus groups referred to how used effectively so that it can benefit the recipients to
unemployment had led to personal dehumanisation in become self-reliant and self-sufficient, rather than
themselves, in their families and in their communities just being used for consumption. An example of this
by stating that: is contributing to co-operatives such as social clubs
You become inhuman and stop caring about other or a township colloquially known as "stokvel", so
people. If I see your glasses and I am unemployed, I will take that money can grow to help one start a business that
your glasses, and it is fine with me. If I see that you bought can generate income and employ other members of
a new car, I will hijack you. I don’t care whether you live the community. In this way, the effective use of BIG
those are mental results. It dehumanizes a person – UY2 through contributions from community members
They look at you as if you are useless because you don’t can have a multiplier effect, leading to investment and
have anything. They will say don’t tell me about that entrepreneurial opportunities.
person – UA1&2 The youth focus group linked BIG to factors such as
So, when they see you going to the mall, they think the creation of facilities and infrastructure, assistance,
that you are crazy. You don’t even have a car – UG3 personal progress, personal engagement and channels
Unemployment in the community of the City for job creation. Their perceptions of the lessons they
of Tshwane Metro in Region 1 leads to personal could learn from the effective dissemination of BIG
dehumanisation. Focus group members argued to community members were summarised as follows:

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Vol. 11 No. 2, 2025
My answer is still with the facilities, there are I think for a start it should be R 1500 because
a lot of abandoned spaces in the townships and all these you buy a bar of soap today after three days it is done and
buildings are empty, but we have homeless people and need when you come to buy again is gone, but you have five
spaces – UY3 children – UA1
The biggest lesson I am learning is that it is a go-moment From the perspective of the youth focus group,
for a person to start running with it – UY1 factors that need to be considered when allocating
Important lessons and strategies derived from the BIG are transport, a person's ambition and the impact
unemployed youth about the BIG in cushioning on their life. Their perceptions of the cost of receiving
unemployment are that it should build infrastructure BIG were captured as follows:
and facilities in their community to encourage youth I am ambitious and believe that R 12000 will be
to be more active in thinking about their personal adequate because life is expensive and when you go to
development and not to rely on the government. Checkers you find apples for R40 so for me R 4000 is very
It should also be seen as a seed capital for the creation little – UY3
of new businesses. I can say R 3000 or R 4000 so that I can pay for
Unemployed adults outlined factors such as transport – UY1
empowerment, unlocking business opportunity, and The analysis indicates that the considerations
building networks as lessons that accrue from the of BIG were predominantly aligned with personal
correct usage of BIG. Their vi ews were posited needs and ambitions, a phenomenon that can be
as follow: attributed to the high cost of living in South Africa.
It is to empower us from where we are now to the next The participants of the focus groups were asked to
level – UA1 suggest figures for the disbursement, and the range of
It is going to help to grow from where I am in my small suggestions was from R 1500 to R 12000. This was to
business to where I want to be as I am currently hustling by take cognizance of their personal needs and abilities
selling perfumes and doing online cleaning services – UA3 to ensure that the money can address their living costs
I am going to use it as an ability to move around and and open opportunities to either invest in business
build networks – UA2 ventures or co-operatives and take care of their families.
The key lesson that unemployed adults can learn
from using BIG is that it enables them to grow their
7.13 Public Engagement and Development
small businesses and build networks of customers.
As noted above, most unemployed adults have work The focus group participants identified numerous
experience prior to their redundancy during the strategies that the government could develop to deliver
COVID-19 pandemic and can use BIG to grow the BIG, such as infrastructure development, community
small businesses they have started and use business engagement, job creation, skills training and grant
networks to become self-sufficient and improve their piloting, among others. They justified their proposals
small businesses to find customers and create jobs for as follows:
others in their communities. I think the government should have imbizos or public
gatherings to penetrate communities because some
of these things people do not know – UA2
7.12 Monetary Value Versus High Cost If it comes to a push, let’s say they must start by piloting it
of Living by starting with the first batch – UA3
When asked to suggest the amount of money They should also provide training in conjunction
that should constitute a basic income, focus group with the Basic Income. We are asking that from the
participants indicated that the monetary value government – UA1
should be linked to the rising high cost of living The strategies proposed by the unemployed
in South Africa. Some of the issues they raised as graduates focused on skills training and prerequisites,
crucial to determining the monetary value of a BIG while the strategies of the unemployed youth echoed
were the need for co-operative savings funds, those of the unemployed graduates by identifying skills
influence, the high cost of living and family certificates, thought processes and the need for self-
responsibilities. The adult focus group members sufficiency. One of the reasons they gave for suggesting
outlined these factors as follows: these strategies is that if people are not trained and
I think it should be R 2 500 and R 500 should go developed and do not have the necessary skills, then
to the pool to form business co-operatives with despite the noble intention of BIG, it may not be
other individuals, like in stokvels and social clubs. used properly and may be misused like other social
I think R 2 500 can sustain us – UA2 grants where community members can buy alcohol,
However, the next member had a different view by drugs and do hair which they see as dealing with their
indicating the scarcity of resources in South Africa, state of unemployment. It was generally agreed upon
and stated her view in this way: by members of the focus groups that BIG could be

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a necessary intervention tool to address the challenges government should develop people to change their
of unemployment. However, it was cautioned that mindsets by scaffolding knowledge on entrepreneurship
community members should undergo training or and a culture of saving and investment that can
development in order to accrue benefits from the encourage those who receive the Basic Income Grant
disbursement of BIG, such as job creation opportunities to use the disbursement to start their own small
and building networks that can assist their current businesses and employ other members of the community,
small businesses to grow. thus having a multiplier effect. Based on the findings,
it is recommended that the Basic Income Grant be
linked to training and development opportunities that
8. Conclusions can help the unemployed to create jobs. Furthermore,
The study analysed the feasibility of a Basic Income the City of Tshwane Metro should strategically
Grant to mitigate the effects of unemployment implement a local economic development strategy as
among local community members in the Tshwane a constitutional mandate for local governance, with
Metro. In this study, a thematic approach was adopted a view to capacitating and funding entrepreneurs to
to identify how focus group members use the Basic contribute to job creation opportunities. Furthermore,
Income Grant as an intervention tool to mitigate the City of Tshwane Metro should collaborate
unemployment. Three themes and six sub-themes with other development institutions to cultivate an
were generated from the focus group data transcripts. entrepreneurial culture that can lead to job creation
Among the main findings of the study were that the and minimise unemployment in the Metro. The present
Basic Income Grant can provide financial support to study is subject to certain limitations; for instance, the
cushion against unemployment, but warned that its sample size was modest, precluding the generalisation
misuse can lead to disempowerment. The findings of the findings beyond the current scope. The study was
in relation to challenges revealed that a lack of skills also conducted in the City of Tshwane Metro, meaning
acquisition denied participants the ability to be self- that the findings cannot be applied wholesale to the
sufficient, and also outlined that the South African local government sphere nationwide.

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Received on: 20th of February, 2025
Accepted on: 28th of March, 2025
Published on: 30th of April, 2025

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