Despite the fact that millions of South Africans have been lifted out of poverty over the past 30 years, President Cyril Ramaphosa has admitted that the government still has difficulties in eliminating poverty and inequality.

Although the nation's poverty rate decreased from 71% in 1993 to 56% in 2010, he pointed out that many families still find it difficult to pay for essentials like food, water, power, and transportation.

Ramaphosa made the remarks while delivering his Annual Address to the National Council of Provinces (NCOP), on plans to combat the high cost of living and alleviate poverty.

The president underlined that a significant overhaul of the social and economic structures is necessary to eradicate poverty and inequality in South Africa.

"In the preamble to our Constitution, we have vowed to improve the quality of life of all citizens and free the potential of each person.

"The end of poverty and inequality in South Africa therefore requires nothing less than the fundamental social and economic transformation of our country.

"Over the course of the last 30 years, we have set out on the path of transformation. We have made progress on many fronts. But we have also confronted severe constraints and challenges to our development. Some of these constraints and challenges have arisen from beyond our shores.

"Some of these challenges include a series of global financial crises, a devastating global pandemic, geopolitical rivalry, and the catastrophic effects of climate change," he said.

But Ramaphosa said they were working on improving the lives of South Africans.

Social grants, free basic services, health care, basic education, higher education, social housing and transport are some of the measures that the government has put in place to support the disadvantaged people.

"Our actions must also build an inclusive economy that will continue to reduce poverty into the future – and ultimately eradicate it," he said.

Municipalities frequently mishandle these resources or redirect them to other local council expenses, he further admitted.

For millions of people, social grants remain an essential source of support, particularly for children, the elderly, and individuals with disabilities. Social grants support almost half of all households.

Since almost 25% of households report having insufficient access to food, the president underlined the importance of improving food security and guiding social grant recipients toward sustainable livelihoods.

Ramaphosa also stated that they were working on ensuring that the cost of living was reduced.

"Food is among the most basic of human needs. Yet, nearly a quarter of households consider their access to food as inadequate or severely inadequate.

"While the steep rise in food inflation since the Covid pandemic has eased over the last few months, consumers are yet to feel the effects in their pockets.

"Government is looking at whether the basket of food items that are exempted from VAT could be expanded to include more basic products," he said.

kamogelo.moichela@iol.co.za

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