WELFARE IMPACTS OF SOCIAL GRANTS IN THULAMELA LOCAL MUNICIPALITY OF LIMPOPO PROVINCE, SOUTH AFRICA

Poverty is a persistent problem in South Africa, especially among the black in the rural areas. The main objective of the study was to assess the welfare impacts of social grants among rural households in Dopeni village. The study used primary data that were collected using structured questionnaires. A representative sample of 164 rural households in Dopeni village, Limpopo Province was interviewed. Data were analyzed with FGT Poverty Index and Probit regression. The results show that using consumption expenditures, poverty line was R322. Poor households were found to be about 47%. Social grants were fairly distributed across age and gender groups. About 48.17% had salary as their source of income. Probit regression results indicated that social grants have a statistically significant positive effect on household welfare. It was recommended that information should be made available to rural people about opportunities geared to help them improve their welfare. The education curriculum should be formulated in a way that is practically applicable. Both the government and the private sector should come up with strategies to create much needed jobs