Using R350 grant to start a business? SA weighs in

The 2022 State of the Nation Address (SONA) was delivered by president Cyril Ramaphosa in the Cape Town City Hall. The SONA had to be moved to the Cape Town City Hall after a fire on 2 January 2022 destroyed a large part of the Parliamentary buildings including the National Assembly. Photo: Jaco Marais/South African Pool

The 2022 State of the Nation Address (SONA) was delivered by president Cyril Ramaphosa in the Cape Town City Hall. The SONA had to be moved to the Cape Town City Hall after a fire on 2 January 2022 destroyed a large part of the Parliamentary buildings including the National Assembly. Photo: Jaco Marais/South African Pool

Published Feb 10, 2022

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Cape Town - President Cyril Ramaphosa used his State of the Nation Address to share how two young unemployed South Africans used their R350 Social Relief of Distress grant to start small businesses.

This has caused a bit of a frenzy on Twitter.

Ramaphosa also announced the extension of the R350 SRD grant for at least another year. The grant supports over 10 million unemployed beneficiaries, however, it is the two citizens who used the money to begin business which has Twitter users scratching their heads.

ā€œMr Thando Makhubu from Soweto received the R350 grant for seven months last year, and saved it to open an ice-cream store that employs four people,ā€ Ramaphosa said during the Sona.

ā€œMr Lindokuhle Msomi, an unemployed TV producer from KwaMashu Hostel, saved the R350 grant for nine months to start a fast food stall and support his family,ā€ Ramaphosa added.

Some on Twitter questioned the practicality of starting a business by saving the grant needed by the most vulnerable, when, they argued, that the alotted R350 granted was not enough to support the basic necessities such as food for a month.

ā€œOpening Ice cream shop with R350 SRD that means this person was not hungry mos or I am I thinking to much to it,ā€ a Twitter user questions.

Another suggested the president is ā€˜smoking somethingā€™.

Meanwhile others were in disbelief that R350 a month for seven months is enough to star a business.

TV broadcaster eNCA questioned Finance Minister Enoch Godongwana after Sona where the money will come from to finance the extension of the SRD grant.

But he was non-committal in providing a response, saying all would be revealed during his Budget Speech later this month.

ā€œI would imagine the Head of State would not have made the announcement if he has not interacted with his minister of finance. So I don't want to say whether the money is there, but there has been a consultation before such an announcement,ā€ Godongwana replied.

Meanwhile, others said they would prefer to have jobs than to depend on the R350 grant.

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