17 million vulnerable South Africans rely on the government's social grant scheme to get by. An astonishing one in three people in the country falls into this group, which encompasses single mothers, disabled people, pensioners and war veterans.
This social safety net – one of the biggest in Africa – is among the proudest achievements in the 23 years the African National Congress (ANC) has governed South Africa, since the end of white minority rule.
But the government contract with the company which is responsible for delivering the money is due to expire 31 March, raising fears that the next round of payments, worth about 67 million US dollar (ca. 420 mio. DKR), might not be paid as scheduled on 1 April.
The South Africa Social Security Agency (Sassa), the government body responsible, has failed to agree a new contract. This comes after the country's highest court ruled that the contract with private company Cash Paymaster Services (CPS) was invalid.
The government has set aside 11 billion dollar to pay for this year's social grants bill – three times as much as it spends on defence. In many ways social grants are a form of peace tax in a country with huge inequality, notes BBC.
