Date: 19/11/2002
Source: Ministry of Social Development
Title: Skweyiya: National seminar of the Kagiso Trust
SPEECH BY THE MINISTER OF SOCIAL DEVELOPMENT, DR ZOLA SKWEYIYA, AT THE NATIONAL SEMINAR OF THE KAGISO TRUST, Kempton Park, 19 November 2002
Conference Delegates,
Ladies and Gentlemen,
It is an honour for me to address you today. My thanks to Kagiso and to all who have been involved in putting this conference together. It is an important gathering and the issues to be tackled are critical to the future of South Africa. There is no doubt that our country's top priority must be to alleviate the desperate levels of poverty that exist. It affects a huge proportion of people and confronts us all on a daily basis.
Data released last week by Statistics South Africa reveals once again that a large proportion of our population is poor in monetary terms. A symptom of this being the increasing proportion of income that South Africans spend on food. Well over half of the monthly income of households with the lowest incomes is now allocated to food. This leaves little excess for other basic necessities such as housing, fuel and transport.
As a result of the restriction on internal migration under the apartheid system, poor people are not evenly spread across the country. Three provinces in which were situated most of the former Bantustan populations, have particularly high incidences of poverty, namely the Eastern Cape, KwaZulu-Natal and Limpopo. These provinces are home to large proportions of the nation's households with self-reported food insecurity (OHS 1999). According to analysis published recently by Idasa, 29% of the 18 million children in South Africa live in households in which the next meal is not guaranteed. About one-quarter of these live in KwaZulu-Natal and another quarter in the Eastern Cape. The rest are spread across the other seven provinces. In other words, more than five million South Africans aged under 18 will not have enough to eat today. Can you imagine the effect of this on a child? I would like you to be mindful of the seriousness of this situation when you have your lunch.
Before I talk about government's efforts to deal with poverty, let me commend Kagiso for its efforts in this field. Amongst other things, Kagiso is a major player in the provision of project finance advisory services to public-private partnerships. It is such partnerships that are driving many of our country's large infrastructural developments. I understand that Kagiso has been involved with the National Roads Agency in leveraging funds for toll roads in Mpumalanga, the Eastern Cape and KwaZulu-Natal. Kagiso has advised on the financing of the eagerly awaited Gautrain Rapid Rail Link between Johannesburg, Pretoria and the airport. Kagiso has also assisted the Department of Correctional Services in completing two maximum-security prison facilities. These and other projects will contribute directly or indirectly to the alleviation of poverty through job creation. They will facilitate multiplier effects in the economy that can only be of benefit to the overall social and economic development trajectory of this country.
Moving on to government policy, the development of communities and the economic empowerment of individuals and emerging companies are core values of this government. In various ways, different government departments are implementing programmes and projects aimed at harnessing human potential, encouraging economically self-sustainable initiatives and enhancing quality of life.
In the case of the Department of Social Development, it is tasked primarily with the provision of a social security net for the vulnerable components of our population. During this year, the size of social grants has been increased twice in an effort to counteract the effect of rising food and other prices. This month, social grants are being paid out to about five million beneficiaries. These include almost two million older persons, each receiving an old age grant of R640. The parents or caregivers of more than 2,1 million children aged under seven receive R140 per child. More than 800 000 people with disabilities receive R640. In addition, others receive care dependency, foster care or war veteran grants. The result is than more than R2 billion of cash income is injected into the domestic budgets of poor households by the state each month. As we proceed with our current campaign to register all eligible recipients, this amount is increasing. Additionally, we announced our intention to extend the Child Support Grant to children up to the age of 14.
The impact of the system of social grants is to enhance the quality of life of the most vulnerable components of our society: notably older persons, young children, and people with disabilities. One needs only observe the economic activity that is generated in near pay out points to realise the magnitude of the state's contribution to the alleviation of poverty. The recipients of these grants end up supporting far more people than the grants were intended to support.
The government recognises that the grants on their own are not adequate to address the huge socio-economic challenges facing families and communities. For this reason, a multi-pronged poverty alleviation strategy is being implemented. The Department commissioned a report to look into a system of social security that is comprehensive. This report is now in the public domain. The parliamentary portfolio committee on social development has received comments and submissions in response to the report and further hearings will be convened early next year. We are very serious about the issue and will continue to look at different options in addressing it.
We are also committed to sustainable methodologies to provide relief to those caught up in the cycle of poverty. The government, since 1997, has spent over 1,5 billion rand annually on poverty alleviation programmes.
The Department of Social Development (DSD) in particular, has a dedicated poverty relief programme aimed at generating sustainable sources of income for communities, especially in rural areas. During the 2002/2003 financial year, the department will manage R100 million in poverty relief funds. These funds are being distributed to existing or new projects on the basis of sound proposals and business plans. The majority of existing projects are in the Eastern Cape, KwaZulu-Natal, Limpopo and the Free State. About 11% of poverty relief expenditure last year was on projects that are located within twelve of the designated ISRDS nodal points. During the 2001/2002 financial year there were more than 33 000 beneficiaries of poverty relief projects, about two-thirds of whom were in the disadvantaged categories of women, children, older people, youth and disabled people. Additionally, more than R2 million has been spent in six of the eight Urban Renewal Programme nodal points. This has benefited over 2 000 people in the areas of youth development and HIV/AIDS.
A programme of this nature entails a large amount of administration and the department has introduced standardised application forms and grant agreement documentation to enhance efficiency and most importantly, accessibility to the poor. A computerised monitoring and evaluation tool has been developed and has been installed in the provinces. Provincial staff has been trained in the use of the tool and are in the process of capturing baseline data.
Empowerment of communities through social facilitation is in progress to assist communities in the implementation of their projects. In essence, we have over the past four years learnt that, poverty alleviation requires more than just pumping in money. More important is the strengthening and empowerment of communities so that they become self-reliant and projects become sustainable.
One of the challenges faced by the poverty relief programme is to match programme development objectives and targets with specific community needs. For example, several projects that have fallen under the HIV/AIDS social support have asked the department to provide treatment equipment over and above what is currently perceived as home based care. The nutritional needs of those infected and affected are becoming a critical issue needing added and urgent attention. The purchasing and manufacturing of support equipment and material such as diapers for those who are bed - ridden and the burying of their loved ones, continue to be the burden of those families and communities. It is in this regard that nutrition has become a critical area of poverty alleviation strategy, especially with regard to support for Community and Home Based Care. R45 million has been allocated to the DSD for this financial year for community and home based care and nutritional programmes will be central.
Increasing access to markets for the poverty alleviation projects is another challenge. The programme is geared, where appropriate, towards the exploitation of existing tourist markets. If any lesson can be singled out, it is that capacity building is the critical success factor in any given project in both urban and rural areas. We would like to urge business to assist not only with financial resources but also expertise and advice to these projects.
Ladies and Gentlemen, the latest government intervention is the allocation of R400 million to the social cluster for reducing the effects caused by increased food prices, especially to vulnerable groups. Of this amount, R50 million has been allocated as a subsidy incentive for millers to reduce the retail price of maize meal. The balance will be split between short-term food relief and medium-term food production.
The short-term programme will target needy households to receive food parcels over a period of three months. The households will be identified in thirteen rural nodes that have been prioritised in terms of their poverty profiles. These include districts in the Eastern Cape, Limpopo and KwaZulu-Natal and other provinces. Certain urban nodes with known high levels of poverty will also be targeted.
The longer-term programme will allocate R100 million to starter packs for vegetable gardens and equipment for small animal production. Appropriately identified households will be included in this programme.
Needless to say, government cannot go it alone. We were hugely encouraged at the recent Business Summit at which business leaders pledged support to a range of our existing poverty relief projects. Business people are increasingly realising the importance of contributing to the development of South Africa particularly caring for children. Many companies have social investment programmes that are quietly making a difference in the lives of poor people. That needs to be strengthened, co-ordinated and integrated with other initiatives of the government and other sectors.
In conclusion, we need to accept that South Africa is faced with challenges that require multi-pronged solutions. The solution to these challenges must be underpinned by the involvement of all sectors of society. The government is always open to well-researched and constructive suggestions and recommendations and will take careful note of what emerges from your conference.
I thank you.
Issued by Ministry of Social Development
19 November 2002
Source: Ministry of Social Development
Title: Skweyiya: National seminar of the Kagiso Trust
SPEECH BY THE MINISTER OF SOCIAL DEVELOPMENT, DR ZOLA SKWEYIYA, AT THE NATIONAL SEMINAR OF THE KAGISO TRUST, Kempton Park, 19 November 2002
Conference Delegates,
Ladies and Gentlemen,
It is an honour for me to address you today. My thanks to Kagiso and to all who have been involved in putting this conference together. It is an important gathering and the issues to be tackled are critical to the future of South Africa. There is no doubt that our country's top priority must be to alleviate the desperate levels of poverty that exist. It affects a huge proportion of people and confronts us all on a daily basis.
Data released last week by Statistics South Africa reveals once again that a large proportion of our population is poor in monetary terms. A symptom of this being the increasing proportion of income that South Africans spend on food. Well over half of the monthly income of households with the lowest incomes is now allocated to food. This leaves little excess for other basic necessities such as housing, fuel and transport.
As a result of the restriction on internal migration under the apartheid system, poor people are not evenly spread across the country. Three provinces in which were situated most of the former Bantustan populations, have particularly high incidences of poverty, namely the Eastern Cape, KwaZulu-Natal and Limpopo. These provinces are home to large proportions of the nation's households with self-reported food insecurity (OHS 1999). According to analysis published recently by Idasa, 29% of the 18 million children in South Africa live in households in which the next meal is not guaranteed. About one-quarter of these live in KwaZulu-Natal and another quarter in the Eastern Cape. The rest are spread across the other seven provinces. In other words, more than five million South Africans aged under 18 will not have enough to eat today. Can you imagine the effect of this on a child? I would like you to be mindful of the seriousness of this situation when you have your lunch.
Before I talk about government's efforts to deal with poverty, let me commend Kagiso for its efforts in this field. Amongst other things, Kagiso is a major player in the provision of project finance advisory services to public-private partnerships. It is such partnerships that are driving many of our country's large infrastructural developments. I understand that Kagiso has been involved with the National Roads Agency in leveraging funds for toll roads in Mpumalanga, the Eastern Cape and KwaZulu-Natal. Kagiso has advised on the financing of the eagerly awaited Gautrain Rapid Rail Link between Johannesburg, Pretoria and the airport. Kagiso has also assisted the Department of Correctional Services in completing two maximum-security prison facilities. These and other projects will contribute directly or indirectly to the alleviation of poverty through job creation. They will facilitate multiplier effects in the economy that can only be of benefit to the overall social and economic development trajectory of this country.
Moving on to government policy, the development of communities and the economic empowerment of individuals and emerging companies are core values of this government. In various ways, different government departments are implementing programmes and projects aimed at harnessing human potential, encouraging economically self-sustainable initiatives and enhancing quality of life.
In the case of the Department of Social Development, it is tasked primarily with the provision of a social security net for the vulnerable components of our population. During this year, the size of social grants has been increased twice in an effort to counteract the effect of rising food and other prices. This month, social grants are being paid out to about five million beneficiaries. These include almost two million older persons, each receiving an old age grant of R640. The parents or caregivers of more than 2,1 million children aged under seven receive R140 per child. More than 800 000 people with disabilities receive R640. In addition, others receive care dependency, foster care or war veteran grants. The result is than more than R2 billion of cash income is injected into the domestic budgets of poor households by the state each month. As we proceed with our current campaign to register all eligible recipients, this amount is increasing. Additionally, we announced our intention to extend the Child Support Grant to children up to the age of 14.
The impact of the system of social grants is to enhance the quality of life of the most vulnerable components of our society: notably older persons, young children, and people with disabilities. One needs only observe the economic activity that is generated in near pay out points to realise the magnitude of the state's contribution to the alleviation of poverty. The recipients of these grants end up supporting far more people than the grants were intended to support.
The government recognises that the grants on their own are not adequate to address the huge socio-economic challenges facing families and communities. For this reason, a multi-pronged poverty alleviation strategy is being implemented. The Department commissioned a report to look into a system of social security that is comprehensive. This report is now in the public domain. The parliamentary portfolio committee on social development has received comments and submissions in response to the report and further hearings will be convened early next year. We are very serious about the issue and will continue to look at different options in addressing it.
We are also committed to sustainable methodologies to provide relief to those caught up in the cycle of poverty. The government, since 1997, has spent over 1,5 billion rand annually on poverty alleviation programmes.
The Department of Social Development (DSD) in particular, has a dedicated poverty relief programme aimed at generating sustainable sources of income for communities, especially in rural areas. During the 2002/2003 financial year, the department will manage R100 million in poverty relief funds. These funds are being distributed to existing or new projects on the basis of sound proposals and business plans. The majority of existing projects are in the Eastern Cape, KwaZulu-Natal, Limpopo and the Free State. About 11% of poverty relief expenditure last year was on projects that are located within twelve of the designated ISRDS nodal points. During the 2001/2002 financial year there were more than 33 000 beneficiaries of poverty relief projects, about two-thirds of whom were in the disadvantaged categories of women, children, older people, youth and disabled people. Additionally, more than R2 million has been spent in six of the eight Urban Renewal Programme nodal points. This has benefited over 2 000 people in the areas of youth development and HIV/AIDS.
A programme of this nature entails a large amount of administration and the department has introduced standardised application forms and grant agreement documentation to enhance efficiency and most importantly, accessibility to the poor. A computerised monitoring and evaluation tool has been developed and has been installed in the provinces. Provincial staff has been trained in the use of the tool and are in the process of capturing baseline data.
Empowerment of communities through social facilitation is in progress to assist communities in the implementation of their projects. In essence, we have over the past four years learnt that, poverty alleviation requires more than just pumping in money. More important is the strengthening and empowerment of communities so that they become self-reliant and projects become sustainable.
One of the challenges faced by the poverty relief programme is to match programme development objectives and targets with specific community needs. For example, several projects that have fallen under the HIV/AIDS social support have asked the department to provide treatment equipment over and above what is currently perceived as home based care. The nutritional needs of those infected and affected are becoming a critical issue needing added and urgent attention. The purchasing and manufacturing of support equipment and material such as diapers for those who are bed - ridden and the burying of their loved ones, continue to be the burden of those families and communities. It is in this regard that nutrition has become a critical area of poverty alleviation strategy, especially with regard to support for Community and Home Based Care. R45 million has been allocated to the DSD for this financial year for community and home based care and nutritional programmes will be central.
Increasing access to markets for the poverty alleviation projects is another challenge. The programme is geared, where appropriate, towards the exploitation of existing tourist markets. If any lesson can be singled out, it is that capacity building is the critical success factor in any given project in both urban and rural areas. We would like to urge business to assist not only with financial resources but also expertise and advice to these projects.
Ladies and Gentlemen, the latest government intervention is the allocation of R400 million to the social cluster for reducing the effects caused by increased food prices, especially to vulnerable groups. Of this amount, R50 million has been allocated as a subsidy incentive for millers to reduce the retail price of maize meal. The balance will be split between short-term food relief and medium-term food production.
The short-term programme will target needy households to receive food parcels over a period of three months. The households will be identified in thirteen rural nodes that have been prioritised in terms of their poverty profiles. These include districts in the Eastern Cape, Limpopo and KwaZulu-Natal and other provinces. Certain urban nodes with known high levels of poverty will also be targeted.
The longer-term programme will allocate R100 million to starter packs for vegetable gardens and equipment for small animal production. Appropriately identified households will be included in this programme.
Needless to say, government cannot go it alone. We were hugely encouraged at the recent Business Summit at which business leaders pledged support to a range of our existing poverty relief projects. Business people are increasingly realising the importance of contributing to the development of South Africa particularly caring for children. Many companies have social investment programmes that are quietly making a difference in the lives of poor people. That needs to be strengthened, co-ordinated and integrated with other initiatives of the government and other sectors.
In conclusion, we need to accept that South Africa is faced with challenges that require multi-pronged solutions. The solution to these challenges must be underpinned by the involvement of all sectors of society. The government is always open to well-researched and constructive suggestions and recommendations and will take careful note of what emerges from your conference.
I thank you.
Issued by Ministry of Social Development
19 November 2002
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