R1.28bn paid out – SASSA still aids foreigners amidst funding crisis

The South African government’s social welfare system is facing increasing scrutiny as figures released by SASSA reveal a significant portion of its social grant budget is being allocated to foreign nationals.

A total of R1.28 billion in social grants and Social Relief of Distress (SRD) payments was distributed to individuals deemed eligible during the 2025/26 financial year, a figure that raises serious questions about the effectiveness and fairness of the system.

The revelation, detailed in a written response from Social Development Minister Dina Pule to a parliamentary inquiry by the African Transformation Movement (ATM), highlights a complex situation within South Africa’s social safety net.

According to the report, less than 1% of the entire social assistance budget was channeled towards foreign nationals, with permanent residents receiving the largest share at approximately R1.12 billion.

This allocation was primarily directed towards Older Persons Grants, Child Support Grants, and Disability Grants, demonstrating a substantial investment in supporting vulnerable populations within the country.

The figures, however, paint a clearer picture of the distribution.

Permanent residents accounted for R931.5 million of the total, followed by recognised refugees who received R150.8 million, largely for Child Support and Older Persons Grants.

A smaller sum, R10.6 million, was dedicated to the SRD payments, with a notable concentration going to holders of specific permits, including Lesotho Exemption Permit holders receiving R9.18 million.

The breakdown reveals a targeted approach, with specific categories of documented foreign nationals receiving assistance.

It is important to note that SASSA repeatedly stressed the strict eligibility criteria for receiving social assistance.

The agency confirmed that its procedures involve rigorous verification against Department of Home Affairs records, explicitly excluding undocumented immigrants and those residing unlawfully within the country.

This emphasis on legal status underscores the government’s position on ensuring that benefits are directed towards those who meet the legal requirements for support.

Despite these assurances, the sheer scale of the payments to foreign nationals – particularly permanent residents – warrants further investigation.

Critics argue that the system’s focus on documented migrants may inadvertently leave a significant portion of vulnerable individuals, including asylum seekers and undocumented immigrants, without adequate support.

The ongoing debate surrounding social grant eligibility highlights a fundamental tension: balancing the need to provide a safety net for all vulnerable populations with the responsible allocation of limited resources.

Moving forward, greater transparency and a more comprehensive approach to assessing vulnerability, regardless of immigration status, will be crucial to ensuring the social welfare system effectively serves the needs of all South Africans.

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