EXCLUSIVE | Stern warning from Ramaphosa's own advisors: Basic income grant is way too risky

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President Cyril Ramaphosa.
President Cyril Ramaphosa.
Photo: Filip Singer/Getty Images

President Cyril Ramaphosa has been given a strong warning by the presidential economic advisory council not to implement a permanent basic income grant due to the risks it holds for the country and the damage it would do to economic growth and job creation.

The council also criticised the expert report commissioned by the Department of Social Development - which concluded a basic income support grant was sustainable for the economy - saying that its report was technically flawed, had grossly underestimated the risks, and should be submitted for peer review. 

The presidential economic advisory council is a group of high-powered independent experts selected by Ramaphosa, which reports only and directly to him. The warning on the basic income grant is part of a policy advisory note the panel prepared in the lead-up to Ramaphosa’s State of the Nation Address (SONA). 

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