By Nomvuyo Bengane
In 2024, approximately 28 million people in South Africa received social grants, which is roughly 45% of the country's population.
This includes a range of grants for people with disabilities, children, the elderly, and others in need.
With the unemployment figures for the third quarter of the year at an unsustainable high of 32.1% there is no argument that citizens need financial assistance to survive.
This is especially true of the nation’s youth when viewed in context of their future – and that of the country. Currently 45% of our youth are unemployed.
That’s almost half of the nation’s young people who are unable to contribute to the economy or pay their own way.
Social grants are essential for the elderly and disabled to survive.
For some disadvantaged individuals, grant money can serve as a cushion, particularly when pooled through saving channels like stokvels and used as seed funding to start and grow informal businesses.
However, the reality is that few people achieve economic self-sufficiency solely from grants.
For the vast majority, grants are like a band-aid on a bullet wound – a quick fix for a deeper problem that requires a more thorough and lasting solution.
While they alleviate immediate needs for food they do little to address the root problem of poverty.
Worse, they breed a culture of dependency and deprive people of a sense of dignity and the self-pride that results from being productive and resourceful - a fundamental aspect of human purpose.
This culture of dependency is not unique to South Africa; it reflects a broader challenge across the African continent.
For too long African nations have heavily relied on foreign aid, international loans, and externally imposed economic models.
While such assistance has, at times, provided crucial support, it has also stunted the continent’s growth, leaving many nations trapped in a cycle of dependency, crippling debt, and under-development.
When grants and aid become the default safety net, there is less incentive and capacity to build self-sustaining, homegrown solutions.
And the longer we maintain this status quo, the deeper this tradition of support in the form of handouts becomes entrenched in our society.
It has been empirically proven that this approach does not break the cycle of poverty nor does it stimulate the economy.
Instead, it exacerbates the problem— it leaves millions excluded from meaningful economic participation and deepens economic inequalities which, in our African context, carry a strong racial dimension.
So, the pressing question remains: How do we break free from this culture of dependency to unlock Africa’s true potential and achieve economic self-sufficiency?
Breaking the Cycle
To break free from this cycle, we as Africans must embrace a future grounded in self-sufficiency, empowerment, and sustainable growth.
From my perspective, the path to a prosperous and independent Africa lies in three critical areas: harnessing the continent’s abundant resources, investing in human capital – particularly by ensuring that many of our youth become entrepreneurs, and cultivating a mindset that embraces wealth, abundance, and—most importantly—ownership.
Former Nigerian President Olusegun Obasanjo aptly stated a fundamental truth that I strongly resonate with when he said, “Africa has no reason to be poor.
Our poverty is not an act of God. We are steeped in poverty due to our poor mentality. We need to wake up because we have a wealth of opportunity through access to rare resources.”
Harnessing Africa’s natural resources for economic self-sufficiency
From gold and diamonds to oil, natural gas, and fertile soils, our continent is endowed with vast natural resources.
This is central to Africa’s potential for self-sufficiency. Yet, much of our wealth has been exploited by foreign corporations, with little to no benefit for local populations.
The culture of dependency is not only economic, but also systemic, rooted in the way African countries have engaged with the world economy.
African leaders need to focus on leveraging these resources for the long-term benefit of their countries.
By building value chains that process raw materials locally, nations can create jobs, improve industries, and reduce the need to export resources in their raw form – our inherent wealth - only to buy it back at great cost.
The transformation of African economies needs to be driven by the technology and innovation of key sectors such as agriculture, mining, and manufacturing.
When our leaders sign away the rights to work and process our resources they do our continent a great disservice.
Only when we as Africans take ownership of our natural resources and embrace the principle of stewardship—taking responsibility for ourselves and our rich resources—will we transform the trajectory of our continent’s future.
Investing in Human Capital: Education and Skills Development
No matter how rich Africa’s resources are, they will only be as valuable as the people who can manage, innovate, and utilise them. Education and skills development are the foundation of a brighter future.
This investment in human capital will ultimately reduce dependency on foreign aid by creating an empowered, self-reliant citizenry capable of driving national development themselves.
The African Union’s Agenda 2063 emphasises this as a key area of focus, recognising that Africa’s prosperity depends on its ability to harness the talents of its people, especially its youth.
However, is our education system relevant to the economic needs of our continent?
Not all education is "good education". What we need is an education system that incorporates entrepreneurship, financial literacy, innovation, and digital technology as core components of the curriculum for everyone.
Additionally, it must use methodologies that emphasise experiential, practical application of knowledge to real-life African contexts, ensuring that learning is both relevant and impactful.
The shift to a Prosperity mindset
While it is essential to understand how to manage the continent’s vast resources, and to ensure that we invest in creating an entrepreneurial culture among our youth, it is equally important to instill the right mindset in our citizens from a young age – and to lead by example.
As a business coach and trainer, I am privileged to be at the coalface of training and development of entrepreneurs, many of whom are young people under the age of 34.
Some Enterprise Development Programs perpetuate the culture of dependency by granting entrepreneurs funds without ensuring they have the necessary skills. This not only fosters helplessness but also encourages the misuse and abuse of those funds.
It’s a sad fact that many young startup entrepreneurs prefer business grants over training, often claiming they've received enough already.
However, prudent funders will not provide financial support without ensuring the necessary skills to use it effectively. The real issue is whether entrepreneurs have applied what they’ve learned. If they have, securing funding becomes easier.
Difficulty in raising funds after receiving the right training signals a lack of confidence in turning knowledge into action or a preference for short-term, risk-free solutions—hallmarks of a ‘poverty mindset.’
The solution lies in cultivating a mindset of prosperity and success among entrepreneurs. If training, innovation, and entrepreneurship do not transform mindsets, we’ve missed the mark.
Let us recognize that we are limiting ourselves, so we can take that first vital step towards prosperity. Essentially the shift begins in the mind and I have witnessed first-hand how such a shift in mindset can unlock a wave of innovation, growth, and affluence – not only for myself but for the people around me.
This shift should connect you with your purpose - ultimately connecting you to your inner power.
This is the principle upon which my ideology - Afriternergy™ - is based.
I experience Afriternergy™ as the ‘activated energy of Africa’ that has the potential to guide the trajectory of the continent from poverty to prosperity. It is applied by individuals simply taking practical, actionable steps towards a future where Africa and Africans can live in the abundance that already exists in its rich minerals and diversity.
Africa’s potential in both natural and human resources is immense. It is time for us to shift our perspective and leverage the wealth of opportunities that surround us.
Nomvuyo Bengane is an entrepreneur, mentor, business coach, author and Afriternergy™ creator.
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