‘The community comes to life’: How Social Grants Enable Participation in the Local Economy and Possible Effect on Post-COVID-19 Economic Recovery in Soweto South Africa

Abstract

South Africa has an extensive social grant program reaching over 45 percent of the population and which has mitigated high poverty in the post-apartheid epoch. Yet the impacts on urban poor community economic activities are yet to be duly appreciated. As the major capital injection into the local economy amidst a high rate of poverty and unemployment, the fund serves as the catalyst that enables both beneficiaries and non-beneficiaries to participate in economic activities. A qualitative study was carried out in Soweto to explore linkages between social grants and participation in local economic activities. The findings show a strong nexus between social grants and participation in local economic activities. The key relevance of this study rests on its evidence-based suggestion of the positive impact of social grants on post-COVID-19 economic recovery, especially in poor urban communities such as Soweto.

Keywords:

• social grants
• participation
• post-COVID-19 economic recovery
• local economy
• Soweto
• South Africa

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 is an informal saving mechanism that comprises several people who contribute a specific amount of money regularly (Nnaeme, 2018).

Additional information

Funding

This work was supported by National Research Foundation [grant number 84180].

Notes on contributors

Chibuikem Charles Nnaeme

Chibuikem Charles Nnaeme is a postdoctoral fellow at South African Research Chair of Social Policy, College of Graduate Studies, University of South Africa. He has published his research interests which include social protection, agency, livelihoods, and informal economy in leading journals such as World Development.