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<p>South Africa is one of the countries in the Global South that has been severely affected by the COVID-19 pandemic due to its preexisting socioeconomic challenges, including high unemployment, inequality, and widespread poverty. However, the government implemented social assistance programs, such as the COVID-19 Social Relief of Distress (SRD) grant, to address this crisis, specifically among working adults experiencing economic hardship. This study examines the effect of the COVID-19 SRD grant on household income and expenditure patterns from 2020 to 2023, employing fixed effects (FE) and quantile regression models. The results reveal a significant negative relationship between the SRD grant and total household income. Quantile regression further demonstrates that the grant’s impact is most pronounced among the poorest households underscoring its effectiveness in targeting low-income groups. In terms of expenditure, the grant significantly increases spending on basic necessities (lowest expenditure category) while reducing discretionary spending (median expenditure category), reflecting households’ prioritization of essential needs. These findings highlight the dual role of the SRD grant as a critical safety net for immediate relief and a mechanism for reallocating household resources toward essential goods. However, the negative effect on total household income suggests that the grant alone is insufficient to address structural economic challenges. This study provides critical insights for policymakers, emphasizing the need for integrated social protection strategies that combine immediate relief with sustainable livelihoods and economic recovery.</p>

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Evaluating the socioeconomic effects of South Africa’s COVID-19 social relief of distress grant

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年1月18日

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  • Lateef Olalekan Bello,
  • Dorah Dubihlela

摘要

South Africa is one of the countries in the Global South that has been severely affected by the COVID-19 pandemic due to its preexisting socioeconomic challenges, including high unemployment, inequality, and widespread poverty. However, the government implemented social assistance programs, such as the COVID-19 Social Relief of Distress (SRD) grant, to address this crisis, specifically among working adults experiencing economic hardship. This study examines the effect of the COVID-19 SRD grant on household income and expenditure patterns from 2020 to 2023, employing fixed effects (FE) and quantile regression models. The results reveal a significant negative relationship between the SRD grant and total household income. Quantile regression further demonstrates that the grant’s impact is most pronounced among the poorest households underscoring its effectiveness in targeting low-income groups. In terms of expenditure, the grant significantly increases spending on basic necessities (lowest expenditure category) while reducing discretionary spending (median expenditure category), reflecting households’ prioritization of essential needs. These findings highlight the dual role of the SRD grant as a critical safety net for immediate relief and a mechanism for reallocating household resources toward essential goods. However, the negative effect on total household income suggests that the grant alone is insufficient to address structural economic challenges. This study provides critical insights for policymakers, emphasizing the need for integrated social protection strategies that combine immediate relief with sustainable livelihoods and economic recovery.