Dear Select Committee on Finance, I trust this letter finds you in good health and resolute commitment to transforming the economic landscape of our nation.

I write to propose a critical and forward-looking reform regarding the R350 Social Relief of Distress (SRD) grant. While this grant has provided essential short-term relief to millions of South Africans, particularly the youth, I believe that it is time to transition from relief to development—from dependency to participation.
Proposal:

Transform the R350 SRD Grant into a Youth Entrepreneurship and Enterprise Development Fund, managed decentrally by local governments and municipalities across the country.

Rationale:

1.Sustainability & Economic Participation:
Monthly relief payments, though helpful, are not sustainable in the long term. Redirecting these funds toward youth-led micro-enterprises will empower the youth to create value, not just consume it.

2. Local Government as a Delivery Engine:
By managing the fund locally, municipalities can assess and approve applications faster. This will significantly reduce the national administrative backlog and make the process more accessible and transparent.

3. Creating a Culture of Ownership:
Providing seed capital, support, and mentorship to young people fosters a shift from passive recipients to active economic players. Youth will take pride in building their own livelihoods, ultimately reducing long-term reliance on state assistance.

4. Boosting Township and Rural Economies:

Local government-managed entrepreneurship funds can unlock potential in informal economies.Support for local cooperatives, agriculture, digital services, and manufacturing will multiply jobs and increase GDP contribution from grassroots levels.

Implementation Suggestion:

1.Allocate a portion of the SRD budget per municipality based on youth unemployment figures.

2.Develop a transparent application and approval framework coordinated by local LED (Local Economic Development) units.

3.Partner with institutions such as NYDA, SEFA, and TVET colleges to offer business training, financial literacy, and mentorship.

4.Conduct periodic monitoring and audits to ensure accountability and measurable outcomes.

Conclusion:

This proposal is not just about reform—it is about re-imagining South Africa’s approach to youth empowerment. By shifting from passive grants to productive enterprise development, we invest in a future where the youth are creators of opportunity, not merely beneficiaries of aid.

I humbly request your committee to initiate a feasibility study or pilot project in selected municipalities and to consider this recommendation in the forthcoming policy planning cycle.

Thank you for your continued dedication to shaping a fiscally resilient, inclusive, and innovative economy.

Yours sincerely,
Ofentse Mabaso