Despite robust economic growth averaging 3.5% to 5.2% between 2004 and 2007,1 South Africa remains amongst the most unequal societies in the world. One of the main reasons for South Africa’s high levels of poverty and inequality amongst the previously disadvantaged is a result of high unemployment and a lack of labour force participation in the economy amongst these individuals. The number of new entrants into the labour market far outweighs the number of employment opportunities created in the economy due to a mismatch between the areas of high skill demand and the large supply of low skilled labour. Since the advent of a democratic South Africa, the new administration has made the fight against poverty and inequality a primary focus. This notion was cemented in the Constitution of the Republic of South Africa Act 108 of 1996. In chapter two (i.e. Bill of Rights) of the constitution, the promise of social security is entrenched. Furthermore, in the constitution, a promise is made on the advancement of socio-economic rights. Due to this stance, the constitution has been lauded worldly as one of the most progressive constitutions in the world.

Full document: Concept note (2012) Linking of cash transfers to local economic development